Singapore Telecom FY27 EBIT guidance could be conservative

Research evidence excerpt

Singapore Telecom FY27 EBIT guidance could be conservative

J P M O R G A N Asia Pacific Equity Research

22 May 2026

Singapore Telecom Overweight

STEL.SI, ST SP

FY27 EBIT guidance could be conservative Price (22 May 26):S$4.59

▼Price Target (Mar-27):S$5.20

Prior (Mar-27):S$5.80

In our view, ST’s EBIT growth guidance of low to mid single digits could prove

conservative. We think price repair and cost control in Australia, data centers, ASEAN TMT

GPUaaS, and NCS could all support stronger growth. ST's GPUaaS business Ranjan Sharma, CFA AC

should benefit from pricing power and healthy IRRs as Singapore is energy (65) 6882-1303

constrained. However, our earnings expectations for ST are impacted by our ranjan.x.sharma@jpmorgan.com

reduced earnings expectations for opcos and FX headwinds (e.g. IDR, INR). We Sigrid Qiu

reduce our FY27-28E NI forecasts by 9-12% even though our EBITDA forecasts (65) 6882-1454

sigrid.qiu@jpmorgan.com

are unchanged. We remain OW and reduce our PT to S$5.20 driven by earnings

Ankur Rudra, CFA

revisions. Asset monetization and capital recycling are likely to be key catalysts.

(65) 6801-3237

• FY27 EBIT guidance could be conservative. Singtel has guided for FY26 ankur.rudra@jpmorgan.comJ.P. Morgan Securities Singapore Private Limited

EBIT growth to be between low to mid single digits. Singtel has taken a

cautious approach, citing broader macro concerns. In our view, there are upside

risks to the guidance from price and cost control in Australia, and earnings Key Changes (FYE Mar)

tailwinds from the launch of DC Tuas. In an energy constrained market, ST Prev Cur Δ

could also benefit from pricing power over demand which arises from Adj. EPS - 27E (S$) 0.24 0.21 -11.9%

sovereign AI use cases. We forecast FY27E EBIT growth at 9%. Adj.