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Joelton
Supreme |
30-May-2026 13:42
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Singtel maintains prospects of higher dividends ramps up bid to capture AI growth From the recent peak of $5.21 in March, the share price of Singapore Telecommunication (Singtel) has dropped by around 14% to close at $4.48 on May 26, including 10% lost after its FY2026 report on May 21. The downtrend contrasts with Singtel&rsquo s doubling over the last two years, following the launch of its Singtel28 capital management programme, together with its FY2024 results. Some analysts who have maintained their bullish calls on this stock suggest that investors, used to a string of good news, are disappointed that Singtel is not raising its asset monetisation target. At Singtel&rsquo s last full-year report in May 2025, it raised the asset monetisation target from $6 billion to $9 billion, and launched a $2 billion share buyback programme. No new capital management targets were unveiled on May 20, when Singtel reported its FY2026 results. &ldquo That said, we remain constructive on Singtel&rsquo s longer-term outlook. Singtel&rsquo s openness to an Australian partner taking a meaningful minority stake in Optus points to potential value realisation through monetisation,&rdquo says Chu Peng of OCBC Group Research, referring to Singtel&rsquo s separate announcement on the same day that it is looking for a minority stake partner for its Australia unit. &ldquo We believe Singtel&rsquo s growth opportunities in AI and data centres, alongside monetisation optionality, remain intact and should continue to support earnings growth and shareholder returns over time,&rdquo adds Chu, who has kept her &ldquo buy&rdquo call and $5.75 fair value. When asked, Singtel would not indicate if it is looking for a financial investor cum minority partner to help tack a market value to Optus &mdash estimated by some analysts to be around $16 billion &mdash or an operations partner to build a more reliable network after a series of operational issues in the past year. The sole criterion is that the partner has to be Australian. CEO Yuen Kuan Moon says the move to seek a local partner is an indication of Singtel&rsquo s commitment to the Australian market. He notes that Singtel&rsquo s overseas track record has always been one of strong partnerships with local partners in their respective markets. &ldquo We believe in the market. There are only three operators in Australia. It is a structure that is sustainable,&rdquo he says. Higher dividends, ongoing buybacks If there is a reason for investors to hold on to Singtel, it is the prospect of higher dividends. For the whole of FY2026, Singtel will pay a total of 18.5 cents, yielding around 4%. In contrast, Singtel paid a total of 17 cents in FY2025, a significant improvement from just 7.5 cents in FY2021. Yuen points out that Singtel has increased its dividend over the past five years and the intention is to raise the payout on a sustainable basis. &ldquo Definitely, we want to continue to grow our profits, and naturally, based on our dividend policy, dividends will also see steady growth,&rdquo he says. Under its existing dividend policy, Singtel will pay out between 70 and 90% of its underlying profit as ordinary dividends. For FY2026, the payout ratio is 80% &mdash right in the middle of the range. In addition, there is a standing guidance to pay between 3 and 6 cents in so-called value realisation dividend, which is the balance of divestment proceeds after capex commitments. And for FY2026, 5.1 cents in Value Realisation Dividend (VRD) will be paid, which is close to but below the upper limit of six cents. Thus, if the coming years see additional earnings volatility, Singtel will still have the headroom to pay more dividends from both the underlying profit and the VRD portions, points out CFO Arthur Lang. &ldquo We are not maxing out everything, because, as we said, we want to grow our dividend on a sustainable basis. Our underlying profit this year is growing by 12%. So, when we start to grow our underlying profit, that 70 to 90% of an absolute number will grow,&rdquo says Lang. Citing the growing underlying profit and additional gains from asset monetisation, a team of HSBC analysts led by Piyush Choudhary expects the payout for FY2027 to increase by 8% y-o-y to 20 cents, then by another 8% y-o-y to 21.5 cents the following year, and to a further 23.3 cents for FY2029. Further support will come from the ongoing $2 billion share buyback programme. Up to April 20, some $226 million had been spent on buybacks. Most recently, 3.3 million shares were repurchased on May 26 at between $4.49 and $4.53. Singtel&rsquo s prospects have caught the eye of certain institutional investors as well. On May 6, the Capital Group paid $4.67 each for more than 19.3 million shares, thereby emerging as a substantial shareholder with a stake of nearly 838 million shares, equivalent to 5.1%. This makes the US asset manager the second-largest shareholder after Temasek, which controls around half of the company. Airtel lift, India platform Sachin Mittal of DBS Group Research has a different reason to turn more positive on Singtel: the potentially higher value of Bharti Airtel, Singtel&rsquo s associate in India, because of possible increases in local mobile tariffs. Airtel, despite a smaller market share, offers higher-value offerings than the competition. Previous price hikes have benefitted Airtel more in terms of revenue share. Jio, the market leader by revenue share, is reportedly set to launch its IPO by the end of the year, and it has an interest in charging higher tariffs as well. Airtel, previously fetching a consensus value of INR2,000 ($26.70) per share, is now seen to be worth INR2,300 per share, according to Mittal. With Airtel alone accounting for 49% of Singtel&rsquo s entire group&rsquo s value, Mittal figures that Singtel is worth $5.46, up from $5.36. Singtel is likely to see additional capital markets activity in India. The company, in a 25-75 partnership with KKR, is in the midst of acquiring the remaining 82% of STT Global Data Centre (STT GDC) for an enterprise value of $13.8 billion. To fund its share of the deal, Singtel is to cough up $740 million. The deal is expected to close by the end of the year, and Singtel is already identifying ways to recycle its capital to meet its commitment. According to Lang, STT GDC has publicly indicated plans to list its India business in India. &ldquo Even with the Hormuz crisis today, Indian IPO valuations are actually very, very strong. So if we do that, it allows us to recycle some of that capital and also have an India platform,&rdquo he says. Meanwhile, the acquisition will give Singtel a big leg up with another large data centre platform from which it can drive further growth in its digital infrastructure business. STT GDC, as of now, is in the &ldquo high growth&rdquo phase, with significant investments in new data centre capacity, and therefore not profitable at the net profit level. However, judging from the pipeline of projects under construction across more than a dozen markets, there&rsquo s an acceleration in data centres going operational, which means improvements in ebitda and ebit will show up in the next three to four years, says Lang. Not building ahead of demand Aside from the STT GDC acquisition, Singtel already has a growing suite of data centre offerings. Its Digital Infraco, which includes the data centre operations Nxera, managed to increase its ebit by 24% in FY2026 to $81 million, with revenue up 12% to $486 million. In February, Singtel opened its 58MW high-density data centre in Tuas, bringing its total data centre capacity in Singapore to 120MW, with more than 90% of the capacity already committed before launch. Adjacent to Nxera is Singtel&rsquo s GPU-as-a-service business, marketed under the RE:AI brand. This is one bright spot that could bloom further. Essentially, Singtel will lease capacity on Nvidia-powered servers to users who are not committing to their own hefty capex, or who have temporary spikes and therefore prefer leasing rather than buying. For RE:AI, Singtel has already spent $60 million in a pilot over the past year to build up 1MW of capacity. Some $25 million in revenue has been generated in FY2026. Singtel plans to ramp this up meaningfully by spending $600 million over the next three to five years, to deploy up to 11MW of capacity in the current FY2027 alone. To put this into perspective, this will be the largest GPU cluster in Singapore &ldquo by far&rdquo . More than 80% of the target capacity has already been contracted, securing ebit margins comparable to those achieved by Nxera&rsquo s data centres, which are run separately. &ldquo Rest assured, we are not building ahead of demand. This is just the beginning,&rdquo says Lang. Mittal of DBS estimates that Singtel can generate some $275 million in revenue from this segment in FY2028, along with ebitda of $165 million and ebit of $55 million. For Hussaini Saifee of Maybank Securities, Singtel&rsquo s offering of such a service clearly marks its spot as a big player in a bigger trend. &ldquo AI demand trends remain exceptionally strong, and Singtel is emerging as one of the few listed AI infrastructure plays in Asean through its growing exposure to RE:AI, sovereign AI workloads, data centres and AI-enabled connectivity infrastructure,&rdquo he says. |
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Joelton
Supreme |
30-May-2026 13:41
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Singtel signs S$1.5 billion credit facility from diverse lender pool [SINGAPORE] Singtel said on Friday (May 29) that its treasury unit signed a S$1.5 billion credit facility agreement with 11 banks. Singtel Group Treasury signed the three-year committed revolving credit facility with lenders including the Singapore branches of ANZ, Bank of America, Industrial and Commercial Bank of China, Standard Chartered, Westpac and HSBC, and local majors OCBC and UOB. The agreement comes as Singtel shuffles around capital, having laid out a S$3 billion capital spending plan for 2027, of which S$1.2 billion would be allocated to data centres and artificial intelligence-related purposes. Earlier this month, the group said it was also looking to sell a minority stake in Australian unit Optus. |
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Delvyss
Elite |
29-May-2026 16:39
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I am with you. Buy this with a " hold" mentality, with the intention of keeping it for a while & ignoring short-term market noise.
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gosharej
Senior |
29-May-2026 14:09
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price hollding well, bought some, expect dividend and price growth. Slow and steady.
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Delvyss
Elite |
29-May-2026 13:56
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Singtel maintains prospects of higher dividends ramps up bid to capture AI growthhttps://www.theedgesingapore.com/capital/investing-ideas/singtel-maintains-prospects-higher-dividends-ramps-bid-capture-ai-growth |
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Delvyss
Elite |
29-May-2026 11:53
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Added ...
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Joelton
Supreme |
29-May-2026 10:46
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DBS upgrades Singtel to &lsquo buy&rsquo as Bharti Airtel gets valuation boost with upcoming industry tailwind The brokerage also raises its price target to S$5.46 from S$5.36 [SINGAPORE] Singtel : Z74 -2.68% has been upgraded from &ldquo hold&rdquo to a &ldquo buy&rdquo rating by DBS Research, following a higher valuation of the group&rsquo s India-listed Bharti Airtel, in which Singtel holds a 27.5 per cent stake. In a report on Tuesday (May 26), DBS also raised its 12-month target price for the telco by about 1.9 per cent to S$5.46 from S$5.36, offering significant upside from the S$4.35 being traded on Thursday afternoon. The upgrade is mostly driven by fair valuations of Singtel&rsquo s regional associates, primarily a revision in Bharti Airtel&rsquo s fair value to 2,300 rupees per share from 2,000 rupees. Bharti Airtel accounts for about 64 per cent of Singtel&rsquo s sum-of-the-parts valuation for its regional associate segment, and 49 per cent of the group&rsquo s total valuation. DBS expects a major near-term catalyst, with Singtel competitor Reliance Jio anticipated to file its initial public offering this year, potentially paving the way for industry-wide tariff hikes in India. In addition, a recent share price correction caused Singtel&rsquo s holding company discount to widen to 17 per cent, from 7 per cent in March. DBS projects the telco&rsquo s operating company (OpCo) Ebit (earnings before interest and taxes) &ndash a key share price driver &ndash to grow 5 per cent in FY2027, before accelerating to 10 per cent in FY2028. Optus Its Australian subsidiary Optus, as well as Singtel&rsquo s data centre business and growth engine NCS, are expected to continue driving OpCo Ebit growth. Looking ahead, DBS analyst Sachin Mittal expects Optus to stage a &ldquo strong recovery&rdquo , which could support mid-single-digit group Ebit growth in FY2027. However, FY2027 OpCo Ebit growth is likely to be weighed down by weakness in Singapore&rsquo s consumer business amid uncertainty surrounding industry consolidation. The projected acceleration to 10 per cent growth in FY2028 is expected to be supported by the ramp up of its GPU-as-a-service offerings, as well as a potential recovery in Singapore&rsquo s consumer business. Re-entry opportunity? This widening valuation discount of Singtel shares aligns with views from RHB analysts, who noted on May 22 that recent price volatility presents a potential &ldquo re-entry opportunity&rdquo into the counter. They also pointed to &ldquo early success&rdquo in Singtel&rsquo s artificial intelligence and cloud initiatives, which generated S$25 million in revenue from the initial phase of its data centre and AI deployment, alongside a return on invested capital of 11.1 per cent and a record FY2026 dividend. That said, DBS&rsquo Mittal highlighted key risks, including a decline in regional currencies such as INR, THB and IDR, as well as &ldquo irrational competition&rdquo in Australia, which could hinder recovery. Optus may also face headwinds from intense competition, although the base case assumes a gradual recovery in its operating profit. The company has previously faced pressure, including accumulated losses since FY2021 and operational disruptions such as a major outage in February that affected about 200,000 customers. Singtel&rsquo s results The brokerage noted that analysts&rsquo and market consensus forecasts for the group&rsquo s earnings have been trimmed by about 7 per cent for FY2027 and FY2028, respectively, following Singtel&rsquo s second-half FY2026 results, bringing estimates closer in line with DBS&rsquo revised projections. On Thursday, the telecommunications giant reported fourth-quarter FY2026 core net profit of S$672 million, down 10 per cent quarter on quarter but up 11.8 per cent year on year, bringing full-year core net profit to S$2.8 billion. As a result, several brokerages said the results were &ldquo slightly below expectations&rdquo . Citi analysts noted that Singtel&rsquo s underlying profit slightly missed expectations, citing a weaker fourth quarter in which recurring profit fell about 10 per cent sequentially on softer Singapore operations. DBS&rsquo Mittal shared a similar view, saying core net profit was about 6 per cent below consensus forecasts, citing &ldquo lower-than-expected&rdquo contributions from Singapore and Australia, which weighed on operating company earnings. |
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Delvyss
Elite |
29-May-2026 10:12
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DBS upgrades Singtel to ' buy' as Bharti Airtel gets valuation boost with upcoming industry tailwindhttps://www.businesstimes.com.sg/companies-markets/dbs-upgrades-singtel-buy-bharti-airtel-gets-valuation-boost-upcoming-industry-tailwind |
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Delvyss
Elite |
26-May-2026 14:32
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Singtel FY26 - RHB Research 2026-05-22: AI Cloud Strapline, ROIC Hits 11.1%, Keep BUY https://sginvestors.io/analysts/research/2026/05/singtel-fy26-rhb-research-2026-05-22 |
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Delvyss
Elite |
26-May-2026 14:28
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Singtel - OCBC Research 2026-05-22: Long-Term Growth Outlook Intact https://sginvestors.io/analysts/research/2026/05/singtel-ocbc-research-2026-05-22 |
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Joelton
Supreme |
23-May-2026 13:54
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Earnings miss, downside risks weigh on Singtel shares, but RHB sees &lsquo re-entry opportunity&rsquo
The brokerage expects legacy share overhang to clear, and is betting on the telco&rsquo s AI, cloud initiatives
[SINGAPORE] Singtel&rsquo s share price volatility offers investors a &ldquo re-entry opportunity&rdquo into the counter, said RHB analysts on Friday (May 22), even as other brokerages flagged the group&rsquo s latest earnings miss.
RHB analysts said the volatility has been amplified by technical selling pressure linked to Singtel&rsquo s legacy discounted shares, adding that this overhang is expected to normalise going forward.
They expect &ldquo early success&rdquo in the telco&rsquo s artificial intelligence and cloud initiatives, which generated S$25 million in revenue from an initial 1 megawatt pilot phase.
The pilot marked the initial deployment of the group&rsquo s data centre and AI initiative. Singtel&rsquo s management plans to scale this capacity further next year, supported by about S$600 million in dedicated growth capital expenditure.
Earlier in 2026, Singtel tied up with KKR to buy ST Telemedia Global Data Centres for almost S$14 billion, with the deal expected to be completed in the second half of the year.
RHB also pointed to the telco&rsquo s return on invested capital, which has moved into double-digit territory at 11.1 per cent, alongside a record FY2026 dividend.
The brokerage trimmed its target price by about 1.8 per cent to S$5.40 from S$5.50 to reflect the latest market valuation, though still implying about a 15 per cent upside from current levels.
It also maintained its &ldquo buy&rdquo call on Singtel.
Singtel&rsquo s financial results
On Thursday, the telecommunications giant reported fourth-quarter 2026 core net profit of S$672 million, down 10 per cent quarter on quarter but up 11.8 per cent year on year, bringing its full-year core net profit to S$2.8 billion.
Several brokerages said the results were &ldquo slightly below expectations&rdquo .
CGSI&rsquo s Prem Jearajasingam said the full-year core net profit was in line with its estimates, though he noted that the dividend per share of S$0.185 came in below forecasts.
He added that FY2027 guidance for low-to-mid-single-digit growth in earnings before interest and taxes (Ebit) was &ldquo overly conservative&rdquo and well below market estimates of about 18 per cent.
Citi analysts similarly said that Singtel&rsquo s underlying profit slightly missed expectations, citing a weaker Q4, in which recurring profit fell about 10 per cent sequentially on weaker Singapore operations.
They noted that Singapore Ebit fell 5 per cent to S$795 million for the year, while Q4 earnings before interest, tax, depreciation and amortisation (Ebitda) declined 9 per cent quarter on quarter and 11 per cent year on year amid sustained competition in the consumer segment.
DBS analyst Sachin Mittal said that Singtel&rsquo s core net profit was about 6 per cent below consensus forecasts, citing &ldquo lower-than-expected&rdquo contributions from Singapore and Australia, which dented the operational company&rsquo s earnings.
Looking ahead, the analyst expects Optus to stage a &ldquo strong recovery&rdquo , which could support mid-single digit group Ebit growth for FY2027.
Optus, Singtel&rsquo s Australian subsidiary, has previously faced pressure, including accumulated losses since FY2021 and operational disruptions such as a major outage in February that affected about 200,000 customers.
Despite this, Optus has shown some recovery, with operating revenue rising 2.4 per cent to A$4.3 billion (S$3.9 billion) in its second half ended Mar 31, while Ebitda increased 4.8 per cent to A$1.2 billion.
Singtel is exploring the possibility of bringing in a strategic partner for Optus, as part of its broader approach to manage its portfolio of operating companies and associates.
Risks ahead
Brokers are broadly aligned that energy prices remain a key headwind, although some believe Singtel can ride out higher energy costs.
CGSI&rsquo s Jearajasingam flagged several downside risks, including prolonged disruption in energy markets that could reduce telecommunications and IT spending intensifying competition in Singapore and Australia the risk of large, expensive acquisitions and potential regulatory changes that could weigh on cash flow and earnings.
DBS&rsquo Mittal said that FY2027 Ebit guidance of low-to-mid-single-digit growth sits below expectations of more than 12 per cent, reflecting sector headwinds including delayed consolidation in Singapore, recent declines in mobile pricing, and the wind-down of cost savings.
He also highlighted continued competitive pressure in the Singapore market.
Meanwhile, Citi analysts flagged foreign-exchange volatility as a drag on regional associate contributions, alongside slowing earnings momentum as FY2027 growth moderates from double-digit levels in FY2026.
RHB noted that it views the second-order impact from higher energy costs as &ldquo manageable&rdquo , supported by improving returns on invested capital and the scaling of new growth engines such as NCS and Nxera, which operates Singtel&rsquo s AI-ready data centres across Asia-Pacific.
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Joelton
Supreme |
22-May-2026 10:02
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Why is Singtel seeking an Aussie partner for Optus? The Singapore group&rsquo s wholly owned subsidiary has endured a string of crises in recent years [SINGAPORE] Along with announcing its latest results on Thursday (May 21), Singtel : Z74 -6.37% said it is &ldquo open&rdquo to working with potential Australian partners on Optus, its wholly owned subsidiary. The Business Times looks at why Singtel is considering bringing in a minority partner for Optus, which has been dogged by years of operational missteps, regulatory scrutiny and damaging outages. Upping its game Singtel said the quest for an Optus partner is part of its broader approach towards managing its portfolio of operating companies and associates, which involves &ldquo regularly evaluating opportunities to enhance group businesses and performance&rdquo . It hopes to find a &ldquo like-minded long-term local partner&rdquo that would take a &ldquo meaningful minority stake&rdquo in Optus. It added that such a partner could bring &ldquo complementary capabilities and expertise to improve service provision and quality&rdquo at Optus. Group CEO Yuen Kuan Moon said that Australia remains an attractive market because it has only three mobile network operators, making it structurally sustainable if managed well. However, he acknowledged that Optus &ldquo is not where it&rsquo s supposed to be today&rdquo . Despite its challenges, Optus&rsquo latest financial results show signs of operational stability. For its second half ended Mar 31, operating revenue rose 2.4 per cent to A$4.3 billion (S$3.9 billion) its earnings before interest, taxes, depreciation and amortisation (Ebitda) grew 4.8 per cent to A$1.2 billion. Troubles Down Under Singtel fully acquired Optus in 2001 for around S$11 billion. It is one of the group&rsquo s key overseas businesses, aside from regional associates and joint ventures such as Bharti Airtel in India, AIS in Thailand and Telkomsel in Indonesia. But Optus&rsquo string of crises in recent years that have dented its reputation and raised questions about its operational resilience. Among the most significant incidents are the following: February 2026: Optus was hit by an outage on Feb 9 that reportedly affected around 200,000 customers. The disruption, linked to a software issue, lasted several hours. September 2025: A 13-hour network disruption affected about 600 users and disrupted emergency-call access the outage was linked to at least two deaths in Australia. An independent review commissioned by Optus attributed the incident to a departure from standard processes during a network upgrade. Australia&rsquo s Prime Minister Anthony Albanese, describing the outage as an &ldquo unacceptable failure&rdquo , said Optus had &ldquo let down the nation&rdquo . Optus CEO Stephen Rue apologised for the incident, and Yuen said he was &ldquo deeply sorry&rdquo to learn of the disruption. September 2025: Optus was fined A$100 million by Australia&rsquo s federal court for selling phones and contracts to disadvantaged consumers, including those with intellectual disabilities. The company admitted to improperly selling products to more than 400 such customers in 16 stores between August 2019 and July 2023. November 2023: A near 14-hour nationwide outage disrupted services for millions of customers and affected emergency-call access across Australia. The incident led to the resignation of then-chief executive Kelly Bayer Rosmarin. Australian regulators later fined Optus A$12 million. September 2022: Optus suffered a major cyberattack affecting almost 10 million current and former customers. The breach exposed sensitive personal information, including their home addresses and passport details. In August 2025, the Australian authorities commenced legal proceedings against Optus over the alleged breaches. How can a minority partner help? Singtel&rsquo s move to consider selling part of its stake comes after an independent review into Optus following the outage in 2025. Among the recommendations from the probe was for the board to ensure that the CEO and executive team at Optus are equipped to manage the company&rsquo s reform. Singtel has also pledged full support for Optus in tackling its underlying problems, and said it was committed to the transformation of the unit. It previously disclosed that it has invested more than A$9 billion in Optus in the last five years. Citi Research analysts Arthur Pineda and Luis Hilado believe the onboarding of a strategic partner for Optus could &ldquo raise further proceeds&rdquo if successful. Meanwhile, Singtel has stressed that it remains &ldquo committed to Australia for the long term&rdquo , noting that Optus has been part of the group for more than 25 years. |
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Joelton
Supreme |
22-May-2026 10:01
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Singtel H2 net profit down 20.9% at S$2.2 billion telco open to Aussie minority partner in Optus It proposes a final dividend of S$0.103 per share, including a value realisation dividend of S$0.033 [SINGAPORE] Singtel : Z74 -3.39% on Thursday (May 21) posted a net profit of S$2.2 billion for its second half ended Mar 31, down 20.9 per cent from S$2.8 billion in the year-ago period. The stock fell as much as 3.2 per cent or S$0.16 to S$4.86 as at 9.28 am on Thursday morning following the news, with nearly 7.6 million shares changing hands. This translated to an earnings per share of S$0.1335, down from S$0.1656 for the second half ended March 2025. Its earnings for the period were weighed down by, among other things, lower contributions from its joint ventures and associates, as well as higher finance costs. Losses from foreign exchange over the corresponding period also stood at S$4.7 million, down from a gain of S$7.8 million a year ago. Nevertheless, the group&rsquo s underlying net profit for the six months rose 10.6 per cent for H2, to S$1.4 billion from S$1.3 billion previously. For the second half, revenue stood at S$7.4 billion, up 2.7 per cent on the year from S$7.2 billion. The board proposed a final ordinary dividend of S$0.103 per share, totalling to S$1.7 billion for the financial year ended Mar 31. This consists of a S$0.07 per share core dividend and a value realisation dividend of S$0.033 per share. This brings total annual dividend to a record of S$0.185 per share. With no operations in the Middle East, the group said its direct exposure to the region&rsquo s crisis is limited. However, it noted that most of its key markets are net energy importers and &ldquo susceptible to global energy price volatility&rdquo . &ldquo While existing long-term power contracts should help mitigate this exposure, there could be second-order implications in the form of inflationary pressure resulting in higher operating costs, softer consumer and business spending and slower economic growth,&rdquo said Singtel. &ldquo This will affect the group&rsquo s foreign exchange risk stemming from volatility in the regional currencies where it operates, further impacting translated earnings.&rdquo In a separate statement on Thursday, Singtel said it is open to an Australian partner taking a minority stake in Optus. Miniority shareholders of Singtel, which fully owns Optus, have been concerned over its investment in the beleaguered Australian telco, given the emergency call outage last year which resulted in fatalities. In a media briefing in November, Singtel group CEO Yuen Kuan Moon noted that it has invested A$9 billion (S$7.7 billion) in capital expenditures at Optus over the past five years. The counter closed 0.8 per cent or S$0.04 higher at S$5.02 on Wednesday. |
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Joelton
Supreme |
22-May-2026 10:00
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Singtel seeks clarity on taking part in telco consolidation analysts note &lsquo very high bar&rsquo for approval The group is also mulling a Reit IPO to create &lsquo permanent capital pools&rsquo for longer-term investments [SINGAPORE] Singtel is &ldquo seeking clarification&rdquo from the regulators on its ability to participate in the consolidation of Singapore&rsquo s telecommunications space, in the wake of news that the proposed sale of M1 to Simba Telecom has collapsed. &ldquo We have always been actively seeking to participate in consolidation,&rdquo said Singtel group CEO Yuen Kuan Moon on Thursday (May 21), at the telco&rsquo s FY2026 full-year results briefing. He noted that the group would consider taking part in a market consolidation if regulators give it the green light. Yuen&rsquo s comments followed the Infocomm Media Development Authority&rsquo s (IMDA) announcement on Monday that it is investigating allegations that Simba used radio frequency bands that had not been assigned to it. &ldquo Of course, if we are able to participate in the consolidation, we will definitely evaluate where the opportunities are, and how we would help lift the industry altogether in Singapore,&rdquo said the CEO. An environment with four telcos, he said, is &ldquo definitely not sustainable&rdquo . &ldquo As you can see in many other markets, especially in the region, we have seen that even larger markets have consolidated,&rdquo he added, citing Thailand, India and Indonesia as examples. High bar for regulatory approval OCBC analysts Chu Peng and Ada Lim told The Business Times that the bar for Singtel to receive regulatory approval to bid for M1 is &ldquo very high&rdquo . &ldquo Even if approval were granted, we believe a domestic telco acquisition may not be strategically compelling at this stage,&rdquo they said, adding that a domestic telco doing so &ldquo would likely increase leverage and divert capital from higher-priority initiatives&rdquo . Nirguanan Tiruchelvam, head of consumer and Internet at Aletheia Capital, similarly noted that the chance of Singtel putting its name forward to acquire M1 is &ldquo unlikely as the group is looking to diversify from domestic exposure&rdquo . In response to a question on how the company is handling tight competition in Singapore&rsquo s telco market, Ng Tian Chong, CEO of Singtel Singapore, noted: &ldquo Even though there&rsquo s aggression in the market, we focus a lot on differentiating ourselves through our network, as well as customer experience.&rdquo He cited the company&rsquo s deliberate effort to differentiate Singtel&rsquo s telco services in Singapore into three brands, each catering to different consumer segments. Potential Reit IPO The group is considering a potential real estate investment trust (Reit) initial public offering (IPO). This is part of its strategy to create &ldquo permanent capital pools that (Singtel) can continuously tap for longer-term investments&rdquo , said Arthur Lang, Singtel group&rsquo s chief financial officer. &ldquo This could be in the form of long-term investments, as well as a listing like a Reit, into which we can continue to inject assets,&rdquo he added. He said that this approach &ldquo enables financial flexibility&hellip strengthens returns and supports long-term value creation&rdquo . Lang said that a potential Reit IPO would not necessarily involve Singtel&rsquo s data centre assets, and described it as a possible capital-recycling option available to the group. He did not provide a timeline for the potential Reit listing. Potential minority partner in Optus In a separate statement on Thursday, Singtel said it is open to an Australian partner taking a minority stake in Optus, its wholly owned Australian subsidiary. This follows an independent review into Optus, which has faced a string of crises in recent years. Among the recommendations from the probe was for the board to ensure that the CEO and executive team at Optus are equipped to manage the company&rsquo s reform. Singtel has pledged full support for Optus in tackling its underlying problems, and said it was committed to the transformation of the unit. It previously disclosed that it has invested more than A$9.3 billion (S$7.8 billion) in Optus over the last five years. Yuen said that Australia remains an attractive market because it has only three mobile network operators, making it structurally sustainable if managed well. However, he acknowledged that Optus &ldquo is not where it&rsquo s supposed to be today&rdquo . Responding to a question on whether specific market challenges led to this decision, he said the decision to find a local partner was &ldquo separate&rdquo from any challenges faced. &ldquo Looking for a local partner taking a minority stake in Optus is no different from our strategy and how we operate. We believe in bringing a local partner who&rsquo s like-minded.&rdquo FY2026 results Singtel on Thursday posted a net profit of S$2.2 billion for its second half ended Mar 31, down 20.9 per cent from S$2.8 billion in the year-ago period. The telco attributed the decline mainly to lower exceptional gains from its India associate, Airtel. The dip translated into earnings per share (EPS) of S$0.1335, down from S$0.1688 a year earlier. Excluding exceptional items, the group&rsquo s underlying net profit for H2 rose 10.6 per cent to S$1.4 billion, from S$1.3 billion previously. Revenue came in at S$7.4 billion, up 2.7 per cent year on year from S$7.2 billion. The board proposed a final ordinary dividend of S$0.103 a share, totalling S$1.7 billion for the financial year ended Mar 31. This comprises a core dividend of S$0.07 a share and a value realisation dividend of S$0.033 a share, bringing Singtel&rsquo s total annual dividend to a record S$0.185 a share. For FY2026, the group&rsquo s net profit rose 39.5 per cent to S$5.6 billion, from S$4 billion the year before. Singtel&rsquo s full-year underlying net profit climbed 12.1 per cent year on year to S$2.8 billion from S$2.5 billion, driven by growth in its regional associates Airtel and AIS, as well as operating companies NCS, Digital InfraCo and Optus. Shares of Singtel closed 6.4 per cent or S$0.32 lower at S$4.70 on Thursday. |
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Joelton
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11-May-2026 10:21
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Capital Group emerges as substantial Singtel shareholder after raising stake at average of $4.67 each US asset manager Capital Group has emerged as a substantial shareholder of Singapore Telecommunications, after it bought more shares from the open market. In a May 8 filing, Singtel says that Capital Group had on May 6 bought 19,314,800 shares at an average of $4.67 per share, a level that is around 10% lower from its recent peak two months ago. This brings Capital Group' s total stake to 837,947,249 shares, equivalent to 5.1%, up from 4.98% previously, necessitating a filing with SGX as it is above 5%. At this level, Capital Group is likely the second largest shareholder after Temasek, which holds just over 50%. According to Singtel' s most recent FY2025 annual report, within the standard top 20 list of shareholders, 18 of which are nominee accounts of brokers, banks or the CPF Board. Atrium Investments, meanwhile, is the eight largest shareholder with 184,900,210 shares, equal to 1.12%. Singtel shares, after reaching a recent peak of $5.21 on March 20, has been trending down since. That was around a month before holders of Singtel' s so-called Special Discounted Shares can transfer and sell their shares and receive proceeds in cash. The CPF Board, ranked 7th on Singtel' s shareholders list, holds 737,334,544 shares, equivalent to 4.47% in custody for these SDS shareholders. These shares were mainly bought using their CPF savings from more than three decades ago. Previously, if SDS shareholders sold their Singtel shares, they had to refund the proceeds to their CPF accounts, which are then subjected to the usual withdrawal rules. According to Singtel on May 7, some 83,000 or 13% of the total of some 615,000 SDS shareholders have sold their shares. Singtel will be announcing its full year results on May 21. Singtel closed at $4.69 on May 8, up 1.08% for the day, and up 2.4% year to date. |
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JurongW
Elite |
15-Apr-2026 18:15
Yells: "Earnings give weight, Chart give wings" |
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SBB today - 3.5 million shares bought at 4.86 to 4.89 (17,075,410) |
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Joelton
Supreme |
14-Apr-2026 08:25
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Maybank maintains $5.25 target price on Singtel capital management journey slightly ' delayed' not ' derailed' Bharti Airtel' s share price, whose gains over the past two years have helped nudged along that of Singapore Telecommunications, has corrected by just over 10% year to date, as tariff hikes may be delayed by around 6 months because of the woes in the Middle East. Yet, Hussaini Saifee of Maybank Securities has maintained his " buy" call and $5.25 target price on Singtel, whose own share price is slightly off its recent high, as an opportunity to " accumulate" as Singtel&rsquo s story looks " delayed, not derailed." In his April 13 note, Saifee says that the medium term thesis for Bharti Airtel remains intact. In India, with essentially two strong players, rational competition remains order of the day. " Mobile spend as a percentage of GDP at 0.8% still among the lower end of Asian emerging market peers, and data consumption among the highest globally&mdash all of which support further monetization over time," he says. In addition, Jio, which is controlled by a rival conglomerate Reliance, is targeting an IPO at a multiple of 13x EV/Ebitda, which is a 34% premium to what Bharti Airtel now fetches. Outside India, Singtel' s other businesses are largely resilient. In Australia, the market is seeing its own round of mobile price hikes, with market leader Telstra up between 5 to 15% while Singtel' s unit Optus managed 5 to 6%. Such a trend, according to Saifee, reinforces a rational market backdrop and should support monetisation, even as Optus invests more heavily to get its house in order following the recent high profilt outages. Other Asean associates also remain broadly stable, with Thailand' s AIS growing its earnings at 9%. Here in Singapore, industry consolidation is seemingly delayed, with regulators yet to approve Tuas' s acquisition of M1 from Keppel. " We see it as postponed rather than derailed," says Saifee. Meanwhile, data centres for Singtel remains a smaller but fast-growing bright spot, with ebitda expected to grow at a CAGR of 29% over FY2025 to FY2028. According to Saifee, with the recent correction in Bharti Airtel' s share price, concerns have emerged over whether Singtel will still partly divest its stake in Bharti to meet its targeted capital management initiatives. Singtel has in place an asset monetisation whose most regular feature thus far is the regular trimming of its stake in Airtel often at $1 billion a pop. Saifee reasons that Singtel still has ample buffer from past capital recycling to support payouts. He notes that Singtel' s net debt/EBITDA is just 1.0x and would rise only to 1.3x by FY2028 even after elevated dividends and ongoing buybacks under a $2 billion programme. Even if Singtel pauses the sale of its stake in Bharti Airtel, Saifee believes that Singtel could then sell its 7.7% stake in Thailand' s Gulf Development valued at $2.8 billion, which " looks increasingly monetisable after the stock&rsquo s sharp 42% year to date re-rating." Singapore Telecommunications shares as at 4.55pm was down 0.41% to trade at $4.86. It is up 6.11% year to date. |
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JurongW
Elite |
11-Apr-2026 14:19
Yells: "Earnings give weight, Chart give wings" |
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Enjoy watching Part 2 Sell or Hold? Singtel Special Discounted Shares Windfall! Interview with Singtel Group CFO Ep 2
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spore1
Supreme |
11-Apr-2026 14:11
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Is good time to secure the profit! I think More selling continue next week
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JurongW
Elite |
10-Apr-2026 21:15
Yells: "Earnings give weight, Chart give wings" |
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Singtel Special Discounted Shareholders $6800 Windfall! Group CFO Explains! |
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