StarHub
Last:1.01
-
Starhub Estimated Fair Value - Willis Ow
Post Reply
1-12 of 12
Starhub is currently in it' s fair price range. It not a bad or good stock.
Dont talk so much.
It is $1.47 as I write, up 2 cents.
Where is your $1.40?
ST Engineering, Nokia to cross-sell in key tech areas like 5G, IoT.
This is a bad news for telcos, especially Starhub since they are exploring Nokia NR for 5G. With a cross-sell model, the cost to install Nokia' a NR will increase to the extent of ST Engineering' s market monopoly. This means higher costs for Starhub, making the already lousy prospect for 5G even worst. It is recommended to defer buying of Starhub shares until a lower price of $1.25 or lower.
Its good to do good deeds. Evryone should be aware with this with age and education. Do more for ur own family is most impt. The rest will come after that.
anthonykwong ( Date: 05-Feb-2017 11:28) Posted:
and * her 2 children.....
anthonykwong ( Date: 05-Feb-2017 11:27) Posted:
When I was in Philippines, i saw a mother and his 2 children lying on the sidewalk of the main road. Cupboards were their shelter. All I did was to go to the convenience store buy water, then to the street food stalls buy some food and passed them to the mother. Nothing much I did, but i felt good about it.
So, willisow, you take care of your strays.
: )
Within my means I will do charity to the needy and or deserving humans.
But to do charity to evil or ugly hearted people is a big No No to me.
E.g. to donate/pass money "to an agent or intermediary" and these money then go into making a gold plated water tap or to sponsor someone's big hollywood (and big bungalow) dream is a big No No to me |
|
|
|
and * her 2 children.....
anthonykwong ( Date: 05-Feb-2017 11:27) Posted:
When I was in Philippines, i saw a mother and his 2 children lying on the sidewalk of the main road. Cupboards were their shelter. All I did was to go to the convenience store buy water, then to the street food stalls buy some food and passed them to the mother. Nothing much I did, but i felt good about it.
So, willisow, you take care of your strays.
: )
Within my means I will do charity to the needy and or deserving humans.
But to do charity to evil or ugly hearted people is a big No No to me.
E.g. to donate/pass money "to an agent or intermediary" and these money then go into making a gold plated water tap or to sponsor someone's big hollywood (and big bungalow) dream is a big No No to me.
willisow ( Date: 05-Feb-2017 10:56) Posted:
Give a donation to the strays
|
|
|
|
When I was in Philippines, i saw a mother and his 2 children lying on the sidewalk of the main road. Cupboards were their shelter. All I did was to go to the convenience store buy water, then to the street food stalls buy some food and passed them to the mother. Nothing much I did, but i felt good about it.
So, willisow, you take care of your strays.
: )
Within my means I will do charity to the needy and or deserving humans.
But to do charity to evil or ugly hearted people is a big No No to me.
E.g. to donate/pass money "to an agent or intermediary" and these money then go into making a gold plated water tap or to sponsor someone's big hollywood (and big bungalow) dream is a big No No to me.
willisow ( Date: 05-Feb-2017 10:56) Posted:
Give a donation to the strays
anthonykwong ( Date: 05-Feb-2017 00:14) Posted:
If profit increases 1.7% , est fair value increases by 6 cents to $3.14.
If profit decreases by 33%, est fair value decreases by 116.5 cents to $1.915 |
|
|
|
Give a donation to the strays
anthonykwong ( Date: 05-Feb-2017 00:14) Posted:
If profit increases 1.7% , est fair value increases by 6 cents to $3.14.
If profit decreases by 33%, est fair value decreases by 116.5 cents to $1.915 ?
willisow ( Date: 13-Jan-2017 15:24) Posted:
Dear Starhub Investors,
my preliminary assessment of starhub 2017 operating profit to increase by 1.7% to SGD723million. As such, I have revised its estimated fair value from SGD3.08 to SGD3.14. Current price is approaching SGD3/-, investor may want to take note of its progress.
Thank you :)
Please do not comment or reply in this thread, this is meant for viewing only. Thank you :)
|
|
|
|
If profit increases 1.7% , est fair value increases by 6 cents to $3.14.
If profit decreases by 33%, est fair value decreases by 116.5 cents to $1.915 ?
willisow ( Date: 13-Jan-2017 15:24) Posted:
Dear Starhub Investors,
my preliminary assessment of starhub 2017 operating profit to increase by 1.7% to SGD723million. As such, I have revised its estimated fair value from SGD3.08 to SGD3.14. Current price is approaching SGD3/-, investor may want to take note of its progress.
Thank you :)
Please do not comment or reply in this thread, this is meant for viewing only. Thank you :)
|
|
Still got hope la , Full year only drop 8% to $341.4 million .
I' m pleased to informed that with Starhub fair value materialisted today, this thread will close with immediate effect. Investors are advised not to follow the stipulated entry price and fair value as they will not be updated with the latest interim result. Thank you :)
CLOSED...
Dear Starhub Investors,
my preliminary assessment of starhub 2017 operating profit to increase by 1.7% to SGD723million. As such, I have revised its estimated fair value from SGD3.08 to SGD3.14. Current price is approaching SGD3/-, investor may want to take note of its progress.
Thank you :)
Please do not comment or reply in this thread, this is meant for viewing only. Thank you :)
| |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
|
| OPERATING PROFIT |
$575 |
$643 |
$644 |
$654 |
$602 |
$676 |
$720 |
$733 |
$748 |
$713 |
IN MILLION |
| OPERATING PROFIT MARGIN |
31.86% |
31.93% |
30.26% |
30.42% |
26.90% |
29.24% |
29.73% |
31.07% |
31.34% |
29.17% |
|
| RETURN ON ASSETS |
33.29% |
37.38% |
38.75% |
37.76% |
33.58% |
39.23% |
39.80% |
39.62% |
37.63% |
37.33% |
|
| OPERATING PROFIT/INTEREST COST |
41.07 |
24.73 |
23.85 |
27.25 |
22.30 |
32.19 |
36.00 |
38.58 |
32.52 |
39.61 |
|
| DEBT RATIO |
129.98% |
896.30% |
846.30% |
710.32% |
1490.74% |
2882.61% |
1563.64% |
828.92% |
461.74% |
365.96% |
|
| CASH/TOTAL DEBT |
0.08 |
0.14 |
0.14 |
0.26 |
0.30 |
0.27 |
0.45 |
0.39 |
0.38 |
0.25 |
|
| CASH/SHORT TERM DEBT |
N.A |
1.11 |
0.59 |
0.81 |
0.72 |
2.39 |
N.A |
N.A |
1.32 |
1.25 |
|
| SHARE BASE |
1,850 |
1,705 |
1,712 |
1,714 |
1,716 |
1,717 |
1,718 |
1,721 |
1,726 |
1,730 |
IN MILLION |
| DIVIDEND PAID |
$216 |
$266 |
$308 |
$317 |
$343 |
$343 |
$343 |
$344 |
$345 |
$346 |
IN MILLION |
| DIVIDEND PER SHARE |
$0.12 |
$0.16 |
$0.18 |
$0.18 |
$0.20 |
$0.20 |
$0.20 |
$0.20 |
$0.20 |
$0.20 |
|
| PE RATIO |
8.46 |
7.45 |
5.16 |
5.63 |
7.50 |
7.39 |
9.04 |
10.07 |
9.58 |
8.98 |
|
Just in case, some investors may be wondering y starhub debt ratio is so high, let me explain, beside taking on a higher debts, the high debt ratios were also contributed by a write off in goodwill due to purchase of a subsidiary over its fair value in 2001. This write off was reflected in 2007 starhub financial report till now and it had been on an amortising basis for the past 9 years. Thus we will see a low shareholder equity in starhub balancesheet becos of a negative reserves resulted by the write off. Once the amortisation of goodwill ended, its debt ratio will return to a level similar to 2006 debt ratio.
As mentioned, M1 low avaiable cash was a result of its high dividend pay out and it was also due to a few times special dividend payout in the past 10 years and the most substantial special dividend payout was in 2006 at $120 million. Thus, cash generated from business are mostly return to its shareholders. Some readers may wonder y i still invest in local telco since their avaiable cash on hand do not meet my preference of 1 time total debts or 2 times short term debts. Telco is an exception due to the nature of its business is highly inelastic. Telecommunication is a basic need for modern society, it is unlikely in the next 10 years this service will go into undemand. Hence its cashflow will be stable as its products and services continue to sell into the future. In addition, this is not a cyclical industry unlike casino, property, oil and gas and etc that exhibit volatile operating cashflow which could potentially affect their abilities to service its interest cost obligation. Thus, high cash preference is meant for companies of cyclical nature of business.
Just in case, some existing singtel investors were affected by my analysis given in the new M1 thread, i have the following clarifications. My conclusion of a company performance is always suppported by its performance history and not by my own imagination or preference. Thus, i maintained an independent view on all companies performance and will only conclude after i had read through its past financial reports. Hence, a fact is a fact and readers are free to verify the audencity of my given past data from the financial report of any mentioned company. Although my analysis state that M1 had performed relatively well in term of generating return from its debts and assets, it doesnt mean im negative toward singtel. Given the right price, i would also like to buy singtel share. Singtel also maintained qualitative factors such as its group size and diversity in regional operation which will continue to contribute to its future stable performance.
By revewing a company based on a minimum of its past 10 years performance, beside looking for stable and consistent performance, an investor can also see the strength and weakness of every company. For example, both M1 and starhub performed better in generating return from their operation but they do not possess the qualitative factors like singtel does. Thus, if we can invest in a company that equipped with the ability to generate a good return and strong qualitative attributes, that is an ideal option. However, if a company only possessed a certain attributes, investors will need to assess whether is he comfortable to invest bcos the likelihood of having a perfect company is of low probability. There will always be strength and weaknesses in every company, it is whether our risk profile allow us to accept weaknesses of a company comfortably.
The consolidations which i had prepared and shared with every reader only show the quantitative aspects of a company. it will give a reasonable insight of a company to those who do not have the time to read a 10 years report. However, to have a more thorough understanding especially on the qualitative aspects, reading a financial report is still essential.
Lastly, my own assessment of starhub fair value at SGD3.08 and ideal entry price at SGD2.91 or below. A gentle reminder to all investors, an ideal entry price is derived from a historical safety margin off its fair value, investors are advised to buy in batches to further safeguard your capital against volatilities. The estimated fair value is derived based on a long term horizon and i have no timeline to realise its value. Investors who have a short term investment horizon are advised not to follow.
PLEASE DOT NOT REPLY OR COMMENT IN THIS THREAD, THIS IS STRICTLY MEANT FOR VIEWING ONLY. READERS ARE WELCOME TO DIRECT YOUR COMMENTS OR QUERIES TO MY DISCUSSION THREAD " FEEL FREE TO SHARE ANYTHING ABOUT INVESTMENT" , THANK YOU :)
