During the period, the sector saw collective earnings growth of 11% y-o-y due to stronger post-paid revenue. The earnings improvement was also attributable to the strong associate contribution from Singapore Telecommunications (Singtel), as well as enterprise growth at Starhub and good cost discipline, write the analysts.
UOB Kay Hian analysts Chong Lee Len and Chloe Tan have maintained their “market weight” recommendation on the Singapore telco sector as its earnings for the FY2021 and, or 9MFY2022 came within their expectations.
The sector is currently trading at 12.6x EV/EBITDA, 1 standard deviation below its five-year mean EV/EBITDA.
