Hussaini expects Singtel to post a 15% y-o-y earnings growth in 2HFY2025 when the company delivers its results in late May. The uplift will be driven by profit before tax (PBT) contributions from associates (up 18% y-o-y) alongside y-o-y ebit gains from Optus (up 53%) and NCS (up 44%). “Within associates, Bharti and AIS remain on solid footing and we expect 2H PBT contribution to rise 55% y-o-y and 29% y-o-y, respectively,” he notes.
Hussaini also highlights that Singtel's utility like cashflows remain defensive despite the tariff vagaries. "Backed by a solid 1.6 times net debt to ebitda balance sheet, we see limited risk to Singtel’s dividend outlook of 16.6 to 20.2 cents, leading to a 5% dividend yield. Singtel guided capital recycling initiatives of $6 billion, which positions it as a capital return candidate with a solid and defensive dividend yield,” he says.
As at 1.10pm, shares in Singtel are trading at $3.75 flat.
