SingTel - RHB Invest 2024-09-05: Moving On Up; Keep BUY

• 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:
  1. Driving high quality topline growth,
  2. cost optimisation, and
  3. 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.

Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2024-09-05 SGinvestors.io

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