Singtel needs no introduction. As one of Singapore’s four major telcos, there’s a good chance you already have a mobile data plan, fibre broadband plan or TV channel package from the company.
The telecommunications company has been around for about almost 30 years and has seen strong growth over the decades thanks to the explosion of digital services. Singtel has taken advantage of this to expand its range of lifestyle offerings, which now include data-free music streaming and mobile wallet Singtel Dash.
Disclaimer: This article contains information on Singtel share prices as well as its recent performance trends. It is meant as a guide for readers only, not financial advice. Please practise your own discretion when making investment decisions.
Singtel (Z74) overview
|Sector||Telecommunications services, integrated telecommunications services|
|Year of incorporation||1992|
|Total Market Cap||$45,721.64 million|
|Historical share price||Consistently over $3 over the past five years until Covid-19 sent stock prices plunging to a low of $2.19|
|Current share price||$2.77|
|Current dividend yield||6.25%|
|Dividend yield 5-year average||4.752%|
Note: The figures are accurate at the time of writing (Apr 2020), but due to the nature of this industry, this information changes very frequently. For the latest updates, do check the Singtel (Z74) SGX listing.
Singtel (Z74) Stock Profile: Share prices, dividends and more
Singtel has a massive market capitalisation of over $45 billion, and the company’s stocks have been relatively stable over the past five years. and As a constituent of the Straits Times Index, Singtel shares are commonly regarded as one of the safest blue chips on SGX.
Blue chip stocks are those that are believed to have sound financial performance — they give high returns during good market conditions, and are believed to be able to endure tough market conditions when things go south.
In the recent past, Singtel’s glory days were in 2015, with stock prices five years ago going as high as about $4.50. Stock prices have declined somewhat but have consistently stayed over $3.50 until 2018, when they fell to the $3 to $3.50 range.
At the end of 2019, Singtel was struggling with falling net profits, caused in part by its enterprise business’s poor gains and the Australian bushfires, which affected its Australian subsidiary Optus.
Covid-19 sent Singtel stock prices plunging to a low of about $2.19, the lowest they have been in 11 years. Currently, they have rebounded to about $2.80.
About Singtel (Z74): Market news and updates
Singtel is Singapore’s first telecommunications company, incorporated in 1992. It operates the largest mobile network in Singapore and, together with its subsidiaries, has over 700 mobile subscribers in the world. The company currently employs over 24,000 people.
While Singtel’s principal business was phone lines when it was started in the 90s, it now offers a full suite of mobile, broadband and TV services, including mobile data, broadband and TV channels. Australian mobile operator Optus is a wholly-owned subsidiary of Singtel. In addition, the company also has stakes in major mobile operators in countries like Thailand, India, the Philippines and Indonesia.
Singtel is majority-owned by Temasek Holdings, Singapore’s sovereign wealth fund, with a $52.5 billion shareholding. This offers an extra layer of security and can be reassuring to some — there’s the sentiment that Temasek can bail the company out if the worst happens.
Covid-19 has had an unexpectedly negative effect on Singtel stock prices, but given Singtel’s strong fundamentals, huge market capitalisation and the fact that it is majority-owned by Temasek Holdings, some would say it’s still a pretty safe bet.
As a telco, Singtel is in a better position than most to capitalise on the increase in digital traffic and remote communication which Covid-19 has unleashed upon the world.
There are, however, some caveats. Singtel’s business is very prone to disruption. In recent years, we’ve seen a flood of new telcos and infocomm services like Circles Life and Netflix that might threaten Singtel’s revenue. In addition, the Singapore market might already be saturated as people are already consuming huge amounts of digital content.
That being said, given the extremely low prices of Singtel stocks right now, there seems no way to go but up. If you’re confident that Singtel will survive this crisis, then it may be a good time to pick up some Singtel shares at a discount.
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