- A spate of positive developments has catalysed the strong re-rating of SingTel's share price in recent weeks. We see earnings tailwinds lifting SingTel's return on invested capital (ROIC) to the double-digit territory in FY25F.
- - Read this at SGinvestors.io -
- SingTel remains our preferred Singapore telco pick.
Earnings momentum to pick-up; ROIC upside.
- SingTel's share price has re-rated by nearly 20% over the past month, supported by:
- the growing conviction of its earnings construct,
- - Read this at SGinvestors.io -
- market price repair with the hardening of mobile tariffs across Australia and India, and
- news of additional sell down on the shares of associate, Airtel.
- We see stronger cost rescaling and synergies from the consolidation of the Singapore enterprise business and Optus (part of the S$0.6m in targeted cost savings into FY26F) from 2QFY25 fuelling earnings momentum. This should help lift SingTel's ROIC to ~ 10% in FY25F and ~11.3% in FY26F (FY24: 9.3%).
9% stake in larger NewCo under Thai amalgamation exercise; potentially higher stake in AIS.
- Read more at SGinvestors.io.
