Singapore Stock Market News

SingTel - 1QFY15 preview: Weak Optus

StockFanatic
Publish date: Wed, 13 Aug 2014, 09:57 AM
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We expect 1QFY15 core net profit to be flat yoy, dragged by lower Optus earnings. If so, results could come in below expectations, forming 22-23% of our current full-year estimates (consensus: 23.5%). Therefore, we are likely to cut our FY15-17 EPS forecasts after the results this Thur. Nevertheless, we believe SingTel is still likely to register low single-digit earnings growth in FY15, after flat to declining earnings in FY11-14 and report stronger growth in FY16-17 as Optus rebounds.

Dividend yields are also decent at 4.8-5.4%, which is higher than its Singapore peers. Maintain Add.
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