“We conservatively value Ensign at 24 cents to 40 cents per share based on two to three times FY2025 revenue with mid-point at 32 cents per share,” says Mittal, adding that the venture’s enterprise value (EV) could reach between $750 million and $1.2 billion. This values StarHub (SGX:CC3
) ’s 55.73% stake at $417 million to $694 million, equivalent to 19% to 32% of its current $2.2 billion market cap.
StarHub has reported lower 1QFY2025 ended March earnings, but investor interest may be sustained with the telco’s dividend yield of 5% and also the possible separate listing of its cybersecurity venture Ensign.
“StarHub is focused on driving growth in its cybersecurity business through strategic investments in R&D and talent,” says Sachin Mittal of DBS Group Research. “Ensign has grown by an estimated 30% over the last five years but incurred losses as it continued to invest for growth,” says Mittal, who figures Ensign might go public by FY2025, citing its operating breakeven in FY2023 and projected 20% CAGR from 2025 to 2027.
