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'Buy' Singtel on share price weakness: UOB Kay Hian

Jovi Ho
Jovi Ho7/30/2020 12:36 PM GMT+08  • 3 min read
'Buy' Singtel on share price weakness: UOB Kay Hian
Singtel will see a weak 1HFY2021 with higher bad debt provision before recovery begins in the second half, in line with reopening markets, say UOB Kay Hian analysts Chong Lee Len and Chloe Tan in a Jul 28 report. The analysts recommending “buy”.
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Singtel will see a weak 1HFY2021 with higher bad debt provision before recovery begins in the second half, in line with reopening markets, say UOB Kay Hian analysts Chong Lee Len and Chloe Tan in a Jul 28 report. The analysts recommending “buy” on share price weakness, with a target price of $2.80.

“The Covid-19 pandemic has resulted in lower roaming, prepaid, and handsets revenues for Singtel’s consumer segment. In addition, corporates’ and advertisers’ cutbacks have adversely impacted the enterprise segment. As such, we expect the full impact of the Covid-19 lockdown in 1QFY2021 and higher bad debt provisions for the quarter. We expect Singtel to focus on good cost containment in 1HFY2021 in lieu of weak top-line trends,” say the analysts

Hence, Singtel’s net turnover for FY2021 is expected to dip to $15.2 million from $16.5 million. Likewise, operating profit is projected to fall in FY2021 to $1.3 million from $1.8 million in the previous year.

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