- We revise down our FY25-27 earnings forecasts for StarHub by 6-15% after factoring in 1H25 results but our StarHub's target price is unchanged, reflecting a lower WACC of 7.8% and lower spectrum payments.
Maintain HOLD, wait for more clarity on competition.
- - Read this at SGinvestors.io -
- With these uncertainties, maintain HOLD and watch for a competitive thaw in Singapore — akin to Australia or Indonesia post-consolidation, which we see as the sector’s re-rating trigger.
1H25 review: miss mainly due to consumer weakness.
- - Read this at SGinvestors.io -
- 1H25 NPAT, excluding exceptionals, came in at 40% of Street and MIBG’s previous FY25 forecasts.
- Overall revenue rose 3% y-o-y and 1% q-o-q as broadband, regional enterprise and cybersecurity services revenue rose 4%, 7% and 20% y-o-y, respectively. This at the EBITDA level was offset by 7% y-o-y and 3% q-o-q decline in higher margin mobile revenues.
- 1H25 StarHub's dividends is 3 cents. Management lowered EBITDA guidance from stable y-o-y to -8% to -12%.
Competition may intensify first before easing.
- Read more at SGinvestors.io.
