|Bid||3.1400 x 0|
|Ask||3.1500 x 0|
|Day's range||3.1400 - 3.1600|
|52-week range||2.8300 - 3.5600|
|Beta (3Y monthly)||0.62|
|PE ratio (TTM)||18.31|
|Earnings date||6 Nov 2019 - 11 Nov 2019|
|Forward dividend & yield||0.17 (5.56%)|
|1y target est||3.70|
SINGAPORE (Oct 14): Citi Research believes there is little likelihood for Singapore Telecommunications (Singtel) to cut FY21 dividends to 13-15 cents/share from the current 17.5 cents/share, despite worries raised by some quarters of the market recently. In an Oct 10 report, DBS Group Research said Singtel may be forced to abandon its fixed dividend policy and peg dividend payouts to underlying earnings to relieve some burden off its balance sheet. Earlier in March, ratings agency Moody’s Investors Service had also revised Singtel’s credit ratings outlook from “stable” to “negative” citing continued pressure on the telco’s EBITDA and cash flows.
SINGAPORE (Oct 10): Singapore Telecommunications (Singtel) may be forced to abandon its fixed dividend policy as outlook for its regional associates stays challenging, says DBS Group Research. In March, Moody’s Investors Service revised Singtel’s credit ratings outlook from “stable” to “negative” citing continued pressure on the telco’s EBITDA and cash flows. The credit ratings agency said it would consider downgrading Singtel’s credit rating, should the company’s Net Debt-to-Adjusted EBITDA (core EBITDA plus cash dividends from associates) remain elevated at over 2x or if Singtel’s core EBITDA margins continue to remain below 30%.
With the Monetary Authority of Singapore opening up applications for Singapore’s first digital bank, let’s have a look at the list of contenders for the five licenses.
While many may see StarHub Limited (SGX: CC3) as a stable dividend payer, there is a fibre network operator in Singapore that pays a more consistent dividend.
Singapore kicked off the application process for up to five new digital bank licences and issued detailed guidelines for potential contenders, which could include Southeast Asian ride-hailing firm Grab and Singapore Telecommunications. Asia's non-banking firms have been keen to challenge traditional banks by leveraging their technology and user databases to offer banking services to retail customers and small businesses. "The new digital bank licences, which will be extended to non-bank players, will ensure that Singapore's banking sector continues to be resilient, competitive and vibrant," the Monetary Authority of Singapore (MAS) said in a statement on Thursday.
Investors who own telecommunication companies such as Singapore Telecommunications Limited (SGX: Z74) and Starhub Limited (SGX: CC3) have a few reasons to worry.