Date of Report

October 1, 2024

Broker Name

UOB Kay Hian

Company Overview

Singapore Telecommunications Limited (SingTel) is a major telecommunications and multimedia company based in Singapore. It offers a comprehensive range of services, including mobile and fixed-line telephony, broadband, and pay television services. SingTel is also involved in digital solutions and innovation, catering to both consumer and business markets.

Recent Developments

The report highlights the recent stimulus measures introduced by the Chinese government to boost its economy. These initiatives are expected to positively impact the telecommunications sector, enhancing demand for digital and connectivity services, areas where SingTel operates.

Revenue Exposure to China

SingTel has notable revenue exposure to the Chinese market, primarily through its partnerships and investments in telecommunications services. The anticipated increase in consumer spending and digital transformation initiatives in China could enhance SingTel’s business prospects and revenue generation.

Investment Recommendation

• Recommendation: BUY
• Current Price (S$): 3.24
• Target Price (S$): 3.58
• Potential Upside (%): 10.5%

Market Context

With the expected growth in digital and connectivity services driven by the government’s economic initiatives, SingTel is well-positioned to capitalize on increased demand for its telecommunications and digital solutions. The company’s strong market presence and technological capabilities further enhance its competitive advantage.

Conclusion

SingTel’s strategic focus on telecommunications and digital solutions, combined with its significant exposure to the recovering Chinese economy, presents a compelling investment opportunity. The anticipated growth in digital demand positions SingTel for continued performance and resilience in the coming years.