Stock Analysis: New Telecom | Lianhe Zaobao

Zaobao
2025.08.25 10:14
portai
I'm PortAI, I can summarize articles.

Singtel recommends buying, with a target price of 5.04 SGD and a closing price of 4.25 SGD (+1.19%). Since June last year, its stock price has been highly correlated with the market value of its core joint ventures in India, Thailand, Indonesia, and the Philippines. Bharti Airtel in India accounts for 53% of its valuation, with an expected ARPU of 280 INR by the end of FY2026, driving a 41% compound growth in earnings from FY2025 to FY2027. True Corporation in Thailand is expected to achieve a compound annual growth rate of 15% in earnings. Singtel anticipates a compound annual growth rate of 10% in earnings from FY2025 to FY2028

Singtel

  • Recommendation: Buy
  • Target Price: SGD 5.04
  • Closing Price: SGD 4.25 (+1.19%)

Since June last year, Singtel's stock price has re-established a high correlation with the market value of its core joint ventures in India, Thailand, Indonesia, and the Philippines.

Among them, Bharti Airtel accounts for 53% of Singtel's valuation, with average revenue per user (ARPU) expected to rise to INR 280 by the end of FY2026, driving a 41% compound growth in earnings between FY2025 and FY2027. Advanced Info Services in Thailand is benefiting from the recovery in tourism and 5G network upgrades, with an expected annual compound growth rate of 15% in earnings from FY2025 to FY2027. Indonesian Telecom is expected to improve the competitive environment through industry consolidation, with a projected 8% year-on-year earnings growth in FY2026, exceeding market expectations.

In terms of core business, Singtel expects a 10% compound annual growth in earnings from FY2025 to FY2028, benefiting from the recovery of its Australian telecom company Optus, growth in its IT services company NCS, and data center expansion, along with a SGD 200 million cost-cutting plan. Additionally, potential local market consolidation may bring unexpected benefits, giving the company an advantage in the high-end 5G user and enterprise contract market. (DBS Group Research)

Further Reading

Stock Analysis: New Horizon Group Stock Analysis: Kafan Pharmaceutical International

Source: Zaobao The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.