Broker: CGS International
Date of Report: May 21, 2026
Excerpt from CGS International report.
Report Summary
- Stock: SingTel (ST SP)
- Action: Add (Buy)
- Target Price: S\$5.34
- Current Price: S\$5.02
- Up/Downside: +6.4%
- Highlights:
- FY3/26 core net profit of S\$2.8bn was in line with estimates.
- Dividend per share (DPS) of 18.5 Scts was below forecast.
- Management’s FY27 EBIT growth guidance is conservative (low- to mid-single digit), below consensus expectations.
- Asset monetisation and data centre-driven growth are key re-rating catalysts.
- Digital InfraCo’s Nxera (80%-owned) and cloud AI unit RE:AI are seeing strong demand, with RE:AI targeting S\$600m in contracted revenue over 3-5 years and 20-25% EBIT margins.
- SingTel’s ongoing S\$9bn asset monetisation programme has upside potential.
- Risks include prolonged energy market disruption, increased competition, large acquisitions, and regulatory changes.
- Implications: Investors can consider adding SingTel shares, focusing on asset monetisation and data centre growth as catalysts for share price re-rating. The conservative guidance suggests potential upside if macro risks subside.
above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website : https://www.cgs-cimb.com
