Singtel - Maybank Research 2025-09-03: From Strength To Strength; Three Pillars The Market Hasn’t Fully Captured

• Singtel's share price has outperformed but we see further growth drivers underpinned by:
  1. Optus’s operating environment, which continues to strengthen,
  2. - Read this at SGinvestors.io -
  3. AI and data centre-linked opportunities, which are substantial, with Singtel well-positioned to capture upside.
• We see a marked improvement in its Indonesia and Philippines associates, placing all associates in a strong position. Forex is a headwind but is far outweighed by opportunities.

Optus: Multi-engine recovery in motion

• - Read this at SGinvestors.io -
• Optus rightsizing initiatives which have more legs to execute (margins are 4-5ppt below Telstra/TPG) &
• capex cycle has peaked while MOCN (multi-operator core networks) partner-ship with TPG allows further capex optimization.
• Factoring in tailwinds, we raise our Optus EBIT estimate by 5-20%. We expect Optus mobile revenues, EBIT and FCF CAGR of 4%, 27% and >100%, respectively, over FY25-28.
• Factoring superior growth & lower WACC, we raise our Optus DCF valuation by 36% at 8x EV/EBITDA – still a 2-11% discount to Telstra and TPG.

Singapore mobile: Consolidation to drive rationality

• Read more at SGinvestors.io.

Above is an excerpt from a report by Maybank Research.
Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.

Read also Maybank's most recent report:
2025-09-30 Singtel - Optus Outages: Contained Impact, Near-term Risks.

Price targets by 5 other brokers at Singtel Target Prices.

Listing of research reports at Singtel Analyst Reports.

Relevant links:
Singtel Share Price History,
Singtel Announcements,
Singtel Dividend Payout Dates & Corporate Actions,
Singtel News