Singapore Telecom (ST SP) Buy: Dividends, share buyback, asset monetisation

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Singapore Telecom (ST SP) Buy: Dividends, share buyback, asset monetisation

21 May 2026

Singapore Telecom (ST SP) EquitiesDiversified

Telecommunications

Buy: Dividends, share buyback, asset monetisation Singapore

◆ FY26 dividend rose 9% y/y to SG18.5c; FY27 guidance of MAINTAIN BUY

EBIT growth of low-to-mid single digit y/y looks conservative

TARGET PRICE (SGD) PREVIOUS TARGET (SGD)

◆ We expect dividends to rise led by growth in core business,

5.40 5.50 profits from regional associates, and asset recycling initiatives

◆ Maintain Buy with revised TP of SGD5.40 (from SGD5.50) SHARE PRICE (SGD) UPSIDE/DOWNSIDE

4.70 +14.9%

Reiterate Buy: dividend growth, share buyback and asset monetisation: We think (as of 21 May 2026)

FY27 guidance of low to mid-single-digit EBIT growth is conservative due to multiple MARKET DATA

growth levers. We expect FY27 EBIT growth of 10% y/y to be driven by Optus, NCS Market cap (SGDm) 77,402 Free float 49%

Market cap (USDm) 60,551 BBG ST SP

and doubling of data centre capacity in Singapore to c120MW. In FY28e, EBIT growth 3m ADTV (USDm) 116 RIC STEL.SI

will be led by Optus, NCS, data centre and RE:AI (GPUaaS). Thus, we forecast EBIT

FINANCIALS AND RATIOS (SGD)

CAGR of 10% over FY26-29e to SGD2.0bn by FY29, and underlying profits to rise at Year to 03/2026a 03/2027e 03/2028e 03/2029e

9% CAGR over FY26-29e, driven by growth in the core business and higher profits HSBC EPS 0.17 0.18 0.20 0.22

HSBC EPS (prev) 0.16 0.19 0.20 na

from regional associates, led by rising ARPU. We think the outlook for dividends is Change (%) -5.3 -4.2 na

upbeat and we expect them to rise 8% y/y in FY27 to SG20c and another 8% y/y in Consensus EPS 0.17 0.20 0.23 0.19

PE (x) 28.1 26.7 24.0 21.8