Equity Analysis /
Singapore

SG : SingTel - NCS speedily climbs its growth ARQ

    Choong Chen Foong
    Choong Chen Foong

    Telecommunication Analyst

    CGS-CIMB
    28 March 2022
    Published by

    NCS acquired digital services firm ARQ Group for A$290m, in line with its strategy to expand into Australia. Valuation is in line with past transactions. We think Singtel can sustain a 75% payout ratio, aided by asset recycling, including the recent 1.6% stake sale in Airtel Africa Comcentre divestment. Reiterate Add and TP of S$3.30. Singtel is our top Singapore telco pick.