Singapore Telecommunications (Singtel)

Singtel kept at 'buy' by Phillip as regional associates see recovery

SINGAPORE (June 17): Phillip Capital continues to rate Singtel a “buy” with an unchanged target price of $3.66, while keeping the stock as its top pick in the telecommunication sector.

This comes on the back of Singtel hosting its Investors Day 2019, where the group’s management gave updates on its various business segments and showcased new abilities.

These capabilities ranged from payment solutions, Internet of Things (IOT), prepaid Electronic Know Your Customer (eKYC) and Singapore’s first 24/7 unmanned pop-up store, UNBOXED.

Right timing: Upside for immediate rebound at 3,264

STI with moving averages and momentum
(June 14): Short term stochastics is rising and has the potential to move up further, indicating another four to five sessions of rally.

Rising stochastics is being reinforced by rising 21-day RSI. These indicators should be able to sustain a further rise in the Straits Times Index to 3,264.

Quarterly momentum is rebounding but it could face resistance in the next couple of sessions, which would in turn stymie the STI’s rally. Elsewhere, ADX is falling as DIs have turned neutral from negative.

SingTel kept at 'add' by CGS-CIMB amid signs of EPS turnaround

SINGAPORE (June 14): CGS-CIMB Research believes Singapore Telecommunications (SingTel) could have seen a bottoming of its earnings per share (EPS) decline, after falling 21.4% in FY19.

“We see Singtel’s core EPS inching up by 1.8% y-o-y in FY20F, then growing 9.3%/5.5% y-o-y in FY21/22F,” says analyst Foong Choong Chen in a Thursday report.

The way Foong sees it, better associate earnings and narrower Group Digital Life (GDL) losses will help offset earnings pressure from Singapore consumers, Group Enterprise (GE) and a weaker Australian dollar in FY20F.

Markets shrug off exit of UK’s May in June; Hong Leong Asia to privatise cement unit

(June 3): June 7 will mark the end of Theresa May’s tenure as British Prime Minister, after a three-year leadership fraught with bad mistakes, resignations, controversy and widely panned policies. Her time as PM will be defined by her inability to deliver Brexit. Even as she broke down in tears after her farewell speech outside Downing Street, there is little sympathy for the “Maybot”.

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Trade war tensions continue to rise, earnings season brings mixed results

SINGAPORE (May 20): Tensions between Washington and Beijing continue to rise as US President Donald Trump shows no inclination to de-escalate the country’s trade war with China. Trump believes his clash with Chinese President Xi Jinping is boosting his popularity ahead of next year’s election campaign. 

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Speed bumps ahead for Singtel but analysts still recommend a 'buy'

SINGAPORE (May 17): Phillip Capital is maintaining Singtel at “accumulate” with higher $3.31 target as the telco carries out digitalisation of its business to optimise costs further.

As part of this strategy, Singtel has invested in self-service channels to help reduce customer acquisition costs.

An example is the launch of Gomo, a pure digital product with no physical stores and call centre support which resulted in 32,000 post-paid subscriber growth q-o-q.

Singtel's current level of dividend is sustainable despite headwinds facing associates, say analysts

SINGAPORE (May 15): Singtel’s current level of dividend is sustainable, say analysts, given the telco’s projected FY2020 cash flow is forecast to be at $3.3 billion.

In its FY19 results announcement on Wednesday morning, Singtel says it will pay a final dividend of 10.7 cents, bringing full-year dividend to 17.5 cents.

Maybank remains 'neutral' on telco sector as uncertainty looms

SINGAPORE (Apr 1): Maybank Kim Eng Research remains “neutral” on the Singapore telco sector amid uncertainty over the implication for competition in the industry with M1’s imminent de-listing.

The research house believes StarHub provides the best value and Netlink NBN Trust offers insulation from uncertainty in the wireless segment.

Maybank has “buy” calls on both StarHub and Netlink, with target prices of 93 cents and $2.18, respectively.

Singtel launches more digital services amid disruption in the telco industry

SINGAPORE (Mar 25): Not too long ago, the banks started pushing out credit cards to court mobile phone-wielding millennials with cash backs, dining discounts and travel perks. Now, Singapore’s largest telco is taking a leaf from their playbook.

“We are going to go big on digital and lifestyle,” says Yuen Kuan Moon, CEO of Consumer Singapore at Singtel.

Already, the telco offers a number of lifestyle services, including electricity packages with Geneco and restaurant reservation through its fully owned HungryGoWhere.

Singtel well positioned to weather competition, looking cheap at current prices: UOB Kay Hian

SINGAPORE (Mar 21): UOB Kay Hian is maintaining its “buy” call on Singtel with a target price of $3.58, while highlighting that the stock, at the price of $3.02, is currently below its mean EV/EBITDA with a 5.8% dividend yield.

In a Thursday report, analyst Chong Lee Len says she continues to like Singtel for its customer-centric offerings and diversification across the region, as well as lean cost structure.

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