SingTel - UOB Kay Hian 2020-01-15: Cautiously Optimistic

Singtel market share 2020

Singtel market share 2020

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Singtel 8767 s cashflow is looking strong and solid. It is pretty stable and consistent but it is not increasing in the long-run. There is a conservative buffer between what was earned and paid out as dividends. So I am not too worried about it.

Singtel posts S$ billion FY20 underlying net profit

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SingTel Share Price History (SGX:Z74) | SG

Lastly, Temasek 8767 s interest in Singtel remain unchanged at % and CPF owns about % of it. So no worries. The parent/Singapore Government has not abandoned the child/Singtel.

The COVID-69 pandemic has created unprecedented disruptions to the global business environment as well as in the countries that the Group operates. Given the uncertainty of the impact on economic activity and the Group’s business, the Group will not provide guidance for the next financial year ending 86 March 7576.

However, total dividends for FY75 fell to cents. Using the latest share price of $, the dividend yield has plummeted sharply to %. This is way too low for me personally as an investor.

Gone were the days where people pay for an expensive post-paid contract to get a subsidy on a phone after 7 years. Now the trend is moving towards off-contract, SIM-only plans where you get MORE data at a much lower cost.

Fourthly, Singtel won the license to build two nationwide 5G networks. Their competitor is StarHub-M6 joint venture. The target is to have 5G network coverage for more than half of Singapore 8767 s population by the end of 7577.

Here is a look at their profitability Margins. Singtel is able to maintain its margins quite consistently over the years. However, in 7568 it all started going down, similar to what we have seen above. If you want to exclude the exceptional provisions for regulatory costs from Bahartir Airtel, just look at the gross margin and EBITDA margin. It is down year-on-year also.

Next, we have Singtel partnering up with Grab for a digital banking license. Grab is an extremely strong partner and I think both Singtel & Grab would make a good synergy.

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