SingTel - Maybank Research 2024-06-19: Doubling Down On Data Centres

SingTel - Doubling Down On Data Centres

SingTel (SGX:Z74) | SGinvestors.ioSingTel (SGX:Z74)
  • SingTel announced two material data centre investments:
    1. SingTel’s data centre (DC) arm, Nxera, yesterday announced a JV with Telekom Malaysia to build a 64MW DC in Johor Malaysia. SingTel will own 49% of the JV. The partners have committed initial capital of MYR1,152m in the JV and it has acquired a 169,000 sqm land plot in Johor for MYR178m.
    2. - Read this at -

Key takeaways from SingTel's post-announcement management call

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  • While AI workload demand is evolving and customer discussions are shifting from CPUs to GPUs, management of SingTel noted customer demand has shifted from 5-10MW to 20- 30MW.
  • It also noted that Nxera’s focus is on expanding within ASEAN/tier-1 markets, and thus the STT GDC investment will give it much wider exposure.
  • Capital outlay in both ventures are considered investments and thus is on top of the company’s FY25E capex budget. While the target valuation paid for STT GDC is not disclosed, SingTel's management noted that it was below 32x EV/EBITDA, which it fetched for its own partial DC divestment in 2023.
  • SingTel's management committed to its guidance of S$3-6 cents in value-realization dividends on top of regular dividends even with the new investments announcement.

Our take: Net positive

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Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @

Hussaini Saifee Maybank Research | 2024-06-19

Read also Maybank's most recent report:
2024-07-02 SingTel NDR Takeaway - Multiple Catalysts & Dividend Clarity; Reiterate BUY.

Previous report by Maybank:
2024-07-01 SingTel - Raise Target Price By 4% As Airtel Raises India Mobile Prices By 10-21%.

Price targets by 5 other brokers at SingTel Target Prices.

Listing of research reports at SingTel Analyst Reports.

Relevant links:
SingTel Share Price History,
SingTel Announcements,
SingTel Dividends & Corporate Actions,
SingTel News Articles


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