Broker: OCBC Investment Research
Date of Report: 14 November 2025
Excerpt from OCBC Investment Research report.
Report Summary
- Singtel posted a strong 1HFY26 net profit, nearly tripling to SGD3.4b, boosted by exceptional gains from asset sales; underlying net profit grew 14% to SGD1.4b.
- The company raised its FY26 EBIT growth guidance, expects stronger dividends from regional associates, and declared a 17% higher interim dividend per share.
- Growth drivers include expanding 5G market share, digital businesses, and National Computer Systems (NCS), though Singapore’s mobile business faces competition and potential regulatory risks from Optus issues.
- Management targets low double-digit ROIC in the medium term, focusing on cost efficiency, margin improvement, and scaling up growth engines like NCS and data centres.
- OCBC raised its fair value estimate for Singtel from SGD5.10 to SGD5.75, citing improved performance and a lower holding company discount.
Above is an excerpt from a report by OCBC Investment Research. Clients of OCBC Investment Research can be the first to access the full report from the OCBC website: https://www.ocbc.com
