SingTel NDR Takeaway - Maybank Research 2024-07-02: Multiple Catalysts & Dividend Clarity; Reiterate BUY

SingTel NDR Takeaway - Multiple Catalysts & Dividend Clarity; Reiterate BUY

SingTel (SGX:Z74) | SGinvestors.ioSingTel (SGX:Z74)
  • We hosted SingTel (SGX:Z74)’s management on a non-deal roadshow (NDR) in Bangkok. Following are our key take-aways.

Potential for Singapore mobile consolidation?

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  • That said, SingTel is unlikely to drive consolidation given its dominant market share of 46%.
  • Management sees the upcoming 700MHz spectrum payments (auctioned in 2017) as a potential trigger point for consolidation as payment required from StarHub (SGX:CC3) and M1 are ~S$190- 280m each, which is a material outgo relative to their cash flows while 5G spectrum is already built-out. There is limited need for more spectrum in our view.

Optus trinity: Firm revenues, opex & capex reduction

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  • Of its S$200m/pa in projected opex savings target for FY25-26, a significant part comes from Optus, helped by enterprise services rationalisation (focused more on SMEs and mid-market segments) as well as its TPG network partnership.
  • Optus’ capex likely peaked in FY24 (capex-to-sales ratio of 20%) and is expected to normalise to mid-teens in the medium term. Management expects that with the above tailwinds it can reach a similar RoIC to that of its Australian competitors (Telstra RoIC is at 8% vs Optus FY24 at ~1%).

Dividend clarity: Enough dry powder

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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 | 2024-07-02

Read also Maybank's most recent report:
2024-07-17 SingTel - Our Take On Intouch Restructuring.

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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