The report is the only SingTel's report covers Netlink Trust IIRC... Our valuation methods are difference, but TP is pretty close...
Nomura report on SingTel, TP $4.50, rating buy
Action: Maintain Buy with revised SGD4.50 price target
Despite the 23% YTD rally, we maintain Buy with a revised SGD4.50 price
target, driven by higher core EBITDA and associate valuations. This implies a
further 19-20% total return potential, including 6-7% in dividends over the next
12 months. The recent share price run is a function of an improvement in
operational trends, and macro/ dividend appeal. Operationally, we expect
SingTel's underlying EPS to grow after 3 years of declines – the majority of
which was driven by Bharti in India. One can invest in Bharti directly too, but
Bharti’s valuation appears stretched at +20x P/E (with no dividends) and
regulatory uncertainty prevails. SingTel's other businesses are also trending
well, such as double-digit earnings trends at Telkomsel or improving cost
controls at Optus. We only assume 2-3% pa EBITDA growth each for its
wholly owned businesses for the next few years. On the macro front, a
number of Asian stocks are trading at all-time highs, especially the ones with
solid FCF, dividend yields and liquidity. SingTel fares well on these metrics –
it is still at a 11% discount to regional peers.
Various cash events in next 1-2 years…but decent cash buffer
In recent years, SingTel's earnings have been far more volatile than its
cashflows. This trend will likely continue. At this juncture though, there are
a few 'cash events' to watch for – such as potential sale of Optus satellites
or NetLink Trust, or an investment in Myanmar, or spectrum payments.
Considering these, along with its balance sheet capacity – we still see up
to S10c in surplus capacity, which could be considered for specials in
FY14F. This is after building in SGD1.6bn in digital capex in FY14-16F.