Singtel Rally Setup - DBS Research 2026-05-26: HoldCo Discount and Clear Catalyst

• We trim our FY27F operating companies (OpCo) EBIT estimates for Singtel (SGX:Z74) by 9% to align with management’s low- to mid-single digit growth guidance.

• Singtel’s guidance reflects higher competitive intensity as most telcos lowered mobile plan price by 10-15% in April 2026. Meanwhile, the conclusion of Singtel’s ~S$200mil annual cost savings programme in FY26 limits margin support from cost optimisation.

• - Read this at SGinvestors.io -

Data centre business to grow sharply in FY27F while GPU as a service (GPUaaS) growth to be skewed towards FY28F.

• - Read this at SGinvestors.io -

• In FY26, DC business achieved an EBITDA/EBIT of S$194mil/72mil, which we project to rise to S$294mil/109mil in FY27F given the opening up of Tuas DC in Jan 2026. Tuas DC with 58MW capacity almost doubles Singtel’s DC capacity in Singapore with per MW pricing of Tuas DC significantly higher than existing ones. Singtel has disclosed that over 90% of Tuas DC capacity is pre-leased already.

Singtel is planning to invest in 11MW capacity for GPUaaS.

• Read more at SGinvestors.io.

Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Previous report by DBS:
2026-03-23 Singtel - Too Narrow Holding Company Discount?.

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