SingTel (SGX:Z74)’s recent Investor Day (SID2024) elucidated on its mid-term growth plan. We remain positive on earnings prospects, backed by capital recycling/dividend upsides, ROIC accretion and price repair.
- Read this at SGinvestors.io -
SID2024.
At the SID2024 held on 29 Aug, SingTel's management elucidated the Singtel28 strategy – the group’s mid-term growth plan. The focus is on:
Driving high quality topline growth,
cost optimisation, and
capital management.
S$2-3bn of the S$6bn targeted in the mid-term for assets to be recycled will be sourced from equity partners. While there were no specifics, we think a further sell down in Airtel (29%) is likely following the >S$3bn successfully raised in recent years coupled with partial divestments of NetLink Trust (SGX:CJLU) (24.8%) and/or NCS (100%). The proceeds should comfortably meet the 3-6 cents in variable realisation dividend.
- Read this at SGinvestors.io -
Challenging core markets; repricing of Optus plans should sustain revenue momentum.
Read more at SGinvestors.io.
Above is an excerpt from a report by RHB Securities Research. Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.
