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Joelton
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25-May-2026 10:42
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PhillipCapital' s Chew raises target price for TeleChoice second time in two months
Paul Chew of PhillipCapital has kept his " buy" call on TeleChoice International after its 1QFY2026 results that were within expectations.
Now, citing the recent re-rating of SGX-listed proxies in the system integration sectors, Chew has applied a higher valuation multiple and has thus raised his target price to 33 cents from 27.5 cents. This marks his second price target increase in two months after he raised it from 21.5 cents in March. For its 1QFY2026, TeleChoice reported profit before tax of $2.3 million, an increase of 78% y-o-y, driven mainly by a big jump in its business of managing logistics of mobile devices on behalf of its key customer in Malaysia, U-Mobile, which won over more subscribers, which led to a bigger volume of mobile devices in demand. However, in Singapore, TeleChoice' s mobile retail business suffered losses because of longer replacement cycles. On the other hand, TeleChoice' s other business segment, ICT, is barely profitable in the quarter with profit before tax of just $60,000, up just $10,000 from the year-earlier 1QFY2025. The company is focused on the rollout of digital infrastructure, namely, storage solutions, and plans to move toward AI solutions. " The sales cycle is longer for such projects," says Chew. This current year, the mobile devices segment is seen to remain the main growth driver. TeleChoice' s contract with U-Mobile has been extended for another year and Chew expects further extension upon further negotiations. The company has another business segment in network installation and Chew notes that the company' s entry into data centre coolant installations in Indonesia is another area of growth. In what might be another significant growth driver, TeleChoice announced in March it was participating in a tender to design and build a data centre project in Malaysia. The tender results will be known within months. " Award of the Malaysia design-and-build data centre project will provide Telechoice with a significant pivot into a new, faster-growth segment," says Chew. For now, he has kept his FY2026 earnings estimates but has raised his valuation multiple from 15 x to 18x FY2026 earnings, in line with the recent re-rating of SGX-listed proxies in the system integration sectors. Chew expects stable growth for the mobile devices segment but warns that a weak rupiah will weigh on growth for the network engineering segment, while the ICT segment is still seeking new growth verticals amid a competitive environment. In another positive aspect, Chew observes that Telechoice has been undertaking share buybacks as high as 26.38 cents. TeleChoice International shares closed at 25 cents on May 23, down 1.96% for the day but up 47.06%. |
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tofudidi
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16-Apr-2026 10:08
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share buyback @ 210. should cross 30c next 
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SmallSmall
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16-Apr-2026 10:03
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Uncharted liao $0.24 +$0.02
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SmallSmall
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13-Apr-2026 16:21
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This one attempting to break newer high....
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Joelton ( Date: 18-Mar-2026 09:54) Posted:
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PhillipCapital' s Chew raises target price for TeleChoice to 27.5 cents on growth prospects of mobile devices logistics
TeleChoice International has reported FY2025 earnings inline with the expectations of Paul Chew of PhillipCapital. However, with growth momentum in its main mobile device distribution segment - named personal communication solutions, or PCS, and as it is managing to turn around its smaller managed services and network buildout segments, Chew has raised his target price for from 21.5 cents to 27.5 cents.
In the most recent year ended Dec 2025, Telechoice' s revenue gained 27% y-o-y to $276 million, driven largely by the logistics management business the company undertakes for Malaysian operator U-Mobile. Adjusted patmi in the same period was up 20% y-o-y to $4.4 million, due to lumpy inventory provisioning.
To signal its appreciation for shareholders, TeleChoice plans to pay a final dividend of 0.45 cent, up from just 0.125 cent paid for the preceding FY2024.
Specifically, revenue from the business of handling devices logistics for key customer U-Mobile jumped 42% y-o-y to $200 million, driven by the telco' s growth in subscriber numbers and also higher postpaid plans. TeleChoice also increased outlets, widened the range of phones and introduced more accessories, notes Chew.
On the other hand, Telechoice got to make higher inventory provisions. Chew notes that there was a spike in inventory write-down or a $2.5 million increase to $3.8 million. " We believe it is a general inventory provisioning rather than actual obsolescence," he reasons.
According to Chew, the PCS segment will continue to be a key growth driver, riding on U Mobile' s aim to increase market share with the rollout of its 5G network, which implies more business for TeleChoice.
Also, its network engineering services segment will see growth with new managed services in Indonesia and the installation of network equipment in Malaysia.
A third business segment, ICT, or info-communication technology, is " recovering" as TeleChoice goes after more projects in healthcare and financial services, he adds.
For the current FY2026, Chew has raised his patmi forecast by 13% to $8.3 million, and by applying the same 15x PE, in line with other SGX-listed proxies in the system integration and software sectors, derive the higher target price of 27.5 cents.
Down the road, the company is mulling further expansion into new, higher-growth segments within the digital infrastructure, including data centres, says Chew.
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7ocean ( Date: 03-Oct-2025 09:17) Posted:
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Joelton ( Date: 30-Sep-2025 11:41) Posted:
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PhillipCapital initiates coverage on TeleChoice with &lsquo buy&rsquo at 21.5 cents target price
Analyst Paul Chew of PhillipCapital has initiated coverage on communications player TeleChoice International (TeleChoice) with a &ldquo buy&rdquo call and target price of 21.5 cents, on expectations the company, having recently turned around, is set to maintain steady earnings growth.
The group is 50.4% owned by ST Telemedia, a Temasek wholly-owned company focused on communications and media, data centres, and infrastructure. After four years of losses, TeleChoice turned around with an adjusted net profit of $3.5 million in the FY2025, while 1HFY2025 earnings swung from a net loss of $600,000 to an adjusted profit after tax and minority interests (patmi) of $2.3 million.
Chew notes that the group&rsquo s personal communications solutions (PCS) business segment, which made up about 73% of its profit before tax (PBT) in the 1HFY2025, operates Malaysia&rsquo s Planet Telecom' s retail chain, manages StarHub Platinum Shops in Singapore and is also a distributor for its prepaid card business.
TeleChoice is also the full-service distribution, brand marketing, and retail management of Chinese mobile phone player Honor' s products in Singapore.
&ldquo TeleChoice distributes Honor and Samsung handsets. However, for Honor, it includes managed services for brand activities and channel marketing. Pure distribution of phones has lower margins,&rdquo he writes.
In Malaysia, the PCS segment secured a $500 million contract for Fourth-Party Logistics (4PL) services, including procurement, retail management, fulfillment and holistic supply chain solutions, with U Mobile, the third-largest mobile operator in the country.
The group&rsquo s 4PL contract has a base fee with incentives, with fees paid for the procurement, warehousing, financing, delivery and returns of the handsets to end customers and distributors. It covers major phone brands such as Apple, Samsung, Xiaomi, Honor, and Vivo.
Chew notes that although there are no margins earned from the handsets, TeleChoice also manages the majority of U Mobile outlets, where it receives a fee for providing services to customers.
The contract is for an initial term of two years, which could be extended for an additional year. One key risk in the 4PL contract noted by the analyst is inventory obsolescence.
Next, TeleChoice&rsquo s info-communications technology (ICT) segment which specialises in consultancy, system integration, and comprehensive ICT offerings across digital infrastructure, tech and apps services, and communications made up 17% of PBT in the 1HFY2025.
The group&rsquo s ICT projects in Singapore include storage and server refreshes for enterprises, campus management infrastructure, unified communications and contact centres. Major partners in the space include Avaya, Genesys, Oracle, Huawei, Supermicro and IBM.
Chew writes: &ldquo Revenue is evenly split between hardware, maintenance, and projects. AI and automation projects will be the new growth area for the ICT sector.&rdquo
Finally, the group&rsquo s network engineering services (NES) segment takes up the smallest share of PBT at 10%
In Indonesia, Malaysia and Singapore, TeleChoice builds and manages telecommunications networks, providing a comprehensive suite of specialised products and solutions to address the network infrastructure needs of fixed and mobile operators.
In Indonesia, it supports the build-out of 5G data centres and the expansion of coverage, which covers in-building coverage, tower installation, the testing of blind spots and general network optimisation.
With this, Chew sees that the segment&rsquo s headcount strength has doubled to 4,000. He adds that a new area for NES is in the powertrain and structured cabling of data centres in Indonesia and 5G infrastructure installation in Malaysia, where he names Huawei, Vertiv, Delta, and Schneider as significant power supply solutions companies.
Overall, about 64% of TeleChoice&rsquo s revenue is generated from its PCS segment, with 93% of this being hardware-related. The other divisions, ICT and NES, contribute 22% and 14% respectively to group revenue.
By geography, Singapore accounts for 56% of revenue, followed by Malaysia at 34% and Indonesia at 10%. Chew notes that the 60% increase in FY2o24 revenue was primarily due to a 116% y-o-y surge in PCS revenue, while the ICT and NES segments grew at a more modest 12% and 7% respectively.
On the group&rsquo s balance sheet, Chew notes that a large proportion of TeleChoice&rsquo s assets are in trade and other receivables at 46%, with the balance in inventories at 22% and cash at 19%.
He writes: &ldquo There is minimal need for fixed assets in the business. Trade and other receivables have doubled to $92 million in the FY2024, primarily due to the U Mobile contract for purchasing handphone supplies.&rdquo
Meanwhile, he adds that free cash flow has been &ldquo largely negative&rdquo . &ldquo The losses over the past 4 years have resulted in cumulative $23 million in negative free cash flow. Despite the return to profit in FY2024, working capital needs were negative due to a significant $53 million jump in trade receivables and $9 million rise in inventories. Part of the drawdown in working capital was offset by $35 million in trade payables,&rdquo writes Chew.
On his valuation, he sees that there are &ldquo no direct comparables&rdquo for TeleChoice. Chew&rsquo s 15 times price-to-earnings (P/E) ratio FY2025 valuation is based on SGX-listed proxies in system integration and software companies.
He concludes: &ldquo We expect TeleChoice to enjoy stable earnings growth from 4PL as handset demand rises from new U Mobile subscribers, increasing postpaid plans and expanding branch network. TeleChoice' s business model is fixed asset light with 17% return on equity (ROE). We think the ownership by ST Telemedia is an advantage for future growth opportunities.&rdquo
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TeleChoice&rsquo s Wong drives turnaround, bridges consumer and enterprise markets while aiming for watchlist exit
Shareholders of TeleChoice International were met with unwelcome news on the morning of Dec 5, 2023.
After four consecutive years of losses, the company had been placed on the Singapore Exchange&rsquo s (SGX) watchlist, risking delisting if certain requirements are not met within 36 months.
While not completely unexpected, confronting the situation was still a sobering experience for the then- fresh-faced CEO, Pauline Wong.
" Of course, there was an immediate sinking of the heart to say the least. I think it' s okay to feel lousy for one day, two, or even three days &mdash but after that, we had to snap out of it," says Wong in an interview with The Edge Singapore.
Wong took on her role in mid-October 2023, 24 years after joining TeleChoice as an operations manager in one of its business divisions.
" We received all sorts of emails after the announcement," she adds. One shareholder writes: " As a concerned shareholder, I am saddened that the company continues to report losses. Will we see an improvement soon?"
" With the company placed on the SGX watchlist, will there be a change, and can we expect a return to dividends in the foreseeable future?" writes another.
The infocomm product and service provider&rsquo s four-year profit drought stems from the severe impact of the Covid-19 pandemic, as movement controls and travel restrictions curbed operations in Singapore and the region.
For FY2020 ended Dec 31, 2020, TeleChoice reported a loss of $5.6 million, with revenue falling 31.9% y-o-y to $213.5 million, leading to a loss per share of 1.23 cents from an earnings per share (EPS) of 1.19 cents in FY2019.
Losses of $11.5 million came in for FY2023, which Wong recognises as " a bloodshed year" .
Wong adds: " That to me and to us [the company] was ground zero. That was the year that marked the end of all losses."
Come FY2024, TeleChoice emerged out of the red with a return to profitability of $4.2 million, thanks to revenue surging by 59.8% to $380.4 million, resulting in an EPS of 0.89 cents.
The growth in revenue was driven by an improved performance in all of the company' s divisions.
&lsquo Robust and sustainable&rsquo
If FY2024 was the year of reset, FY2025 will be the year of execution for the company, says Wong.
The CEO has set her eyes on a " robust and sustainable" business model, with an aim of growing its business divisions and delivering shareholder returns.
Today, TeleChoice operates through three different segments: personal communications solutions (PCS), infocomm and technology (ICT) and network engineering services (NES).
The PCS segment is the company' s original business, or as Wong puts it, the " star performer" , mainly involved in the distribution of mobile devices and related consumer tech.
Revenue from the segment takes the lion' s share of group revenue, which rose 115.9% y-o-y to $241.4 million in FY2024, while PBT grew to $6.6 million.
In Singapore, TeleChoice is the largest distributor of Samsung devices and the brand representative of Chinese smart device maker, Honor.
" We do the marketing, we do channel fulfilment, even things like getting type approvals in the beginning, contacting operators and getting them to onboard these models&ndash this is all done by us, and these are tasks that are usually done by the brand [Honor] itself," says Wong.
Honor is a spin-off from Huawei, for which TeleChoice had also served as distributor prior to former Huawei CFO Meng Wanzhou' s 2022 fraud charges in the US, after which the brand' s presence in Singapore was significantly reduced, says the CEO.
Wong attributes the winning of the distribution contract to the company' s good relations with the team at Honor, who were largely made up of familiar faces from Huawei.
Together, Samsung and Honor make up around half of the PCS segment' s FY2024 $241.4 million revenue.
In Malaysia, TeleChoice has a $500 million four-party logistics contract with major telecommunications provider, U Mobile.
Covering device procurement, inventory management, customer experience, as well as warehousing, storage and distribution, the contract covers three years beginning from February 2024.
" Now we serve all over Malaysia, including east and west Malaysia, at a total of 1,002 touch points. We have been a trusted partner of U Mobile since 2012," says Wong.
Both TeleChoice and U Mobile share the same largest shareholder: Singapore Technologies Telemedia, a subsidiary of Temasek Holdings.
While the PCS business remained profitable even during the troughs of the pandemic, the ICT business was TeleChoice' s only loss-making division in the recent FY2024.
In the period, the ICT business narrowed its losses to $1.2 million from $7.9 million in the same period last year, after achieving a 12% revenue boost to $85.7 million and significantly reducing operating losses to $1.2 million.
The improvement follows the segment' s restructuring and streamlining in FY2023, where its voice and internet protocol (IP) telephony services business was disposed of and the remaining segment was reorganised into three divisions: digital infrastructure, tech and apps services and lastly, communications.
Here, TeleChoice manages storage servers, cloud services and unified communications for corporations.
Wong says that diversification is necessary to minimise risk in today' s unpredictable climate, even more so post-Covid-19.
" How do we differentiate ourselves in the ICT world? Simply put, we cannot be everything we cannot be the biggest. There' s the likes of NCS, there' s the likes of ST Engineering. We are not competing at that level. So how do we? We have to go deep in our offerings, we can' t go wide," she adds.
With this in mind, TeleChoice clinched wins with " major" players in the banking, healthcare, gaming and hospitality sectors.
" The AI wave is definitely something that will change the ball game in the ICT space," adds Wong.
TeleChoice' s last segment, NES, entails end-to-end solutions for radio and transmission network planning, optimisation, implementation, maintenance, as well as project management for mobile operators and tower owners.
It also covers offerings such as ducting, cabling, accessories, distribution frames, cross-connects, active monitoring systems, power supply and backup solutions for optimising data centres.
Partners in the segment include Huawei, China Telecom Europe (CTE) and Nokia, as these are vendors that deploy 5G networks in their offerings, says Wong.
In this space, the CEO sees Indonesia as a " stronghold" , where TeleChoice employs some 3,500 employees who work with telecom operators and data centres.
The company entered the market in 2023 with the acquisition of NexWave Technologies.
Wong says: " The market is a stronghold because of the country' s sheer size, and Indonesia is the only country where, besides working with operators, we have also worked with data centres."
The CEO eyes more wins in data centres, to " move up the value chain" and tap into the shift from hardware to cloud.
In the FY2024, revenue in the NES business increased 7.5% y-o-y to $53.3 million, resulting in a PBT of $700,000.
Alongside revenue diversification of the company' s business segments, geographical diversification is another one of the " key ways" of managing today' s unpredictability, says Wong.
In the FY2023, 80% of TeleChoice' s revenue was derived from Singapore.
Come the FY2024, 56% came from the city-state, with the remaining split between Malaysia and Indonesia at 34% and 10% respectively.
Growing confidence
Ultimately, Wong wants to create value for shareholders.
She sees her responsibility as a CEO extending beyond the employees under her, but also to shareholders of TeleChoice.
" We have shareholders that have been with us for the longest, longest time. I remember at my very first AGM, I saw shareholders that were very old and they rely on our dividends as pocket money of sorts. So the experience was quite humbling," says Wong.
With this in mind, TeleChoice announced a new dividend policy for FY2024, committing to distribute at least 30% of net profit after tax.
The CEO adds: " This signals our confidence. After four years of losses, if we were not confident that we have already re-built our foundation and rebounded, if this was a flash in the pan, then we would not have been so bold as to come up with a dividend policy."
She notes that TeleChoice has " always been a very good dividend play" .
Since listing at 29 cents in 2004, the company has declared 31 cents in total dividends.
She also says that 96% of total earnings have been paid out to shareholders over the years.
" I don' t think many companies can say that." adds Wong.
The clearest signal of the company' s turnaround has come from the market.
The company' s share price has also risen some 87.5% ytd to close at 15 cents on July 16.
Such is the confidence of the CEO in TeleChoice' s turnaround that she has submitted an official request to SGX to be taken off the watchlist.
She notes that TeleChoice' s market value of around $70 million is always way above the threshold of $40 million.
" We are clearly rebuilding for sustainable and long-term growth."
In an unrated March 4 report by Maybank Securities, analyst Hussaini Saifee acknowledges the company' s return to profitability in FY2024 and dividend resumption of 0.125 cents per share.
He writes: " Looking ahead, TeleChoice expects continuous revenue growth across all segments, despite an uncertain economic environment."
Although it remains to be seen how the company executes its five-year transformation plan, culminating in FY2029' s " year of great expectations" , its first quarter profit before tax of $1.30 million from the 1QFY2023' s $200,000 signals growth in the right direction.
If the recent emails from pleased shareholders are anything to go by, TeleChoice is on the right track.
One writes: " I just had a look at the latest results. TeleChoice' s profit is an encouraging step forward. Great job, thumbs up!"
" Thanks for the effort, the improvements this quarter are heading in the right direction. Keep it up!" writes another.
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Yells: "Cast all our anxieties on Jesus for He cares for us"
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Currently loss making.
Trying to figure out any improvement
MrBear12 ( Date: 05-May-2024 12:47) Posted:
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Yells: "Cast all our anxieties on Jesus for He cares for us"
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MrBear12 ( Date: 05-May-2024 12:44) Posted:
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Yells: "Cast all our anxieties on Jesus for He cares for us"
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KiLrOy ( Date: 18-May-2017 20:26) Posted:
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Yells: "I buy only what I can see."
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