- 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.
Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2024-07-19
Read also RHB's most recent report:
2024-09-05 SingTel - Moving On Up; Keep BUY.
Previous report by RHB:
2024-08-16 SingTel - A Strong Start To FY25F; Keep BUY.
Price targets by 4 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