Broker: DBS Group Research
Date of Report: 26 May 2026
Excerpt from DBS Group Research report.
Report Summary
- Stock Focus: Singapore Telecommunications Ltd (Singtel)
- Ticker: ST SP
- Action: Upgrade to BUY
- Target Price: SGD 5.46 (revised up from SGD 5.36)
- Key Idea: Singtel’s valuation is boosted by a higher fair value for Bharti Airtel, its largest regional associate. Bharti now accounts for ~64% of Singtel’s sum-of-the-parts valuation for regional associates and ~49% for the Singtel group. The associates’ valuation is increased to SGD 4.12 per share (from SGD 3.79).
- OpCo EBIT Growth: Growth is expected to be 5% in FY27F, accelerating to 10% in FY28F. Core business valuation is lowered to SGD 1.35 per share (from SGD 1.57) due to lower EBIT and higher net debt.
- Catalysts: Potential tariff hikes in India (expected in second half of 2026), and meaningful monetisation from GPUaaS business in FY28F.
- Dividend Yield: Dividend payout ratio projected at ~90% over FY27F-29F, including programmatic dividends from asset divestments.
- Risks: Currency weaknesses (INR, THB, IDR), and irrational competition in Australia could hamper recovery.
- Implications: Investors may benefit from upside as the holding company discount has widened to 17% (from 7%), and core EBIT growth is poised to accelerate, narrowing the discount.
above is an excerpt from a report by DBS Group Research. Clients of DBS Group Research can be the first to access the full report from the DBS Group Research website : https://www.dbs.com/
