Telecommunication Sector - UOB Kay Hian 2024-07-10: Expect Continued Earnings Growth In 2Q24

• For 1Q24, the sector’s 16% y-o-y earnings growth was within expectations, driven by strong contributions from SingTel’s regional associates, ongoing realisation of StarHub’s DARE+ benefits and better overall cost discipline.
• - Read this at SGinvestors.io -
• We like SingTel’s regional exposure, StarHub’s attractive valuation and NetLink NBN Trust’s defensive earnings. Maintain OVERWEIGHT.

1Q24: Stable results in line.

• - Read this at SGinvestors.io -
• The sector outperformance was driven by:
  1. stronger contributions (+15% y-o-y) from SingTel’s regional associates;
  2. turnaround in Optus’ business
  3. ongoing realisation of DARE+ benefits (capex to opex model) from StarHub, and
  4. better cost discipline supporting margins.

Stiff competition to persist.

• Read more at SGinvestors.io.

Chong Lee Len UOB Kay Hian Research | Llelleythan Tan Yi Rong UOB Kay Hian | https://research.uobkayhian.com/ 2024-07-10 SGinvestors.io

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