Broker Name: CGS International Securities
Date of Report: February 14, 2026
Excerpt from CGS International Securities report.
- Report Summary
- CGS International downgrades Starhub from Hold to Reduce, with a lower target price of S\$0.87, citing a sharp decline in profitability and increased risks.
- Starhub’s FY25 net profit missed expectations, with a 73.6% year-on-year drop in Q4 and full-year profit at only 88% of CGSI estimates.
- Management guides for FY26 EBITDA at 75-80% of FY25 levels, reflecting painful restructuring steps, and expects net profit recovery only by FY28.
- Competitive pressure in mobile and broadband persists; enterprise business is expected to make up 50% of revenue by FY28 driven by cybersecurity and digitalisation demand.
- Annual dividend per share is maintained at 6 cents, supported by a healthy cash balance and potential proceeds from asset sales.
- Key upside risks include faster market recovery and additional cash returns; downside risks are prolonged market repair and sustained low profits.
- Starhub’s ESG efforts are noted, with improved sustainability, ranking as the most sustainable wireless provider in 2025, and targets for net-zero emissions by 2050.
- Financial summary highlights declining revenue, EBITDA margins, and net profit through FY26-27, with gradual recovery in FY28.
- Sector and peer comparisons show Starhub’s valuation multiples rising due to earnings decline, with dividend yield remaining stable.
- Report includes disclaimers, legal information, and regional distribution restrictions.
Above is an excerpt from a report by CGS International Securities. Clients of CGS International Securities can be the first to access the full report from the CGS International website: https://www.cgs-cimb.com
