StarHub - RHB Invest 2024-08-15: Getting The Stars Aligned

• StarHub (SGX:CC3)’s 1H24 results were broadly in line with the routine weakness in the mobile segment, offset in part by enterprise gains.
• While its multi-year transformation investments should start to taper off by the year-end, the timing and magnitude of benefits remain uncertain, in our view.

2Q24 earnings +10.2 y-o-y

• - Read this at SGinvestors.io -
• While 1H24 service EBITDA margin of 22.8% was ahead of guidance (22%), we see higher 2H24 opex from increased transformation investments.
• An expected S$0.03 dividend (payable on 6 Sep) puts it on track for the committed StarHub's dividend of S$0.06 for FY24F (or 80% of core PAT, whichever is higher).

Routine mobile weakness; enterprise still the bright spot

• - Read this at SGinvestors.io -
• While StarHub’s multi-year transformation investments (DARE+) should start to taper off by end-2024, the timing and magnitude of benefits are uncertain. Our forecasts are unchanged.

SIM-only plans still dominate postpaid subs adds;

• Read more at SGinvestors.io.

Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2024-08-15 SGinvestors.io

---