Broker Name: CGS International
Date of Report: November 7, 2025
Excerpt from CGS International report.
Report Summary
- SingTel is monetising its stake in Bharti Airtel, raising S\$1.5bn from a recent share sale to potentially fund an increased stake in ST Telemedia Global Data Centre (STTGDC), together with KKR, in a deal valued at over S\$5bn.
- The company is strategically recycling capital from Bharti, which is trading at high valuations, into the data centre business, expected to deliver future growth and support higher dividends as the business turns profitable.
- Recent asset sales have generated S\$3.2bn in gains for SingTel, with the Bharti stake worth S\$47.4bn, and the strategy is seen as positive for long-term shareholder value and potential re-rating of SingTel shares.
- SingTel maintains an “Add” rating with a target price of S\$4.80, reflecting confidence in asset monetisation efforts, though risks include increased competition, costly acquisitions, and regulatory changes.
- The financial outlook shows rising EBITDA and dividends, stable or improving margins, and strong free cash flow generation in the coming years.
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
