Broker Name: CGS International
Date of Report: November 12, 2025
Excerpt from CGS International report.
Report Summary
- CGS International reiterates an “Add” call on SingTel, increasing its target price to S\$5.20, driven by higher Bharti Airtel valuations and positive asset monetisation prospects.
- SingTel’s 1H26 net profit grew 13.6% year-on-year, with results in line with expectations, improved earnings from associates, and stronger cashflows supporting higher dividends and value realisation dividends (VRD).
- Management maintains a S\$9bn asset recycling target; further stake reductions in Bharti could raise up to S\$13bn, potentially funding new growth initiatives like data centre investments.
- Asset monetisation and improving core earnings are expected to continue to drive SingTel’s valuation, with a projected 4.3% FY26 dividend yield and room for increased payout ratios.
- Key risks include rising competition in Singapore/Australia, large/expensive acquisitions, and adverse regulatory developments.
- SingTel is highlighted as a sustainability leader among ASEAN telcos, targeting net-zero emissions by 2045 and implementing substantial ESG initiatives.
- Financial projections show steady revenue and EBITDA growth, improving profit margins, robust free cash flows, and a healthy balance sheet outlook through FY28.
- SingTel’s valuation is supported by its asset recycling agenda, with the stock trading above its historical average, reflecting confidence in its medium-term growth and dividend prospects.
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.cgsi.com.sg
