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StarHub Ltd (SG:CC3)
SGX:CC3
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StarHub
(SGX:CC3)
69Neutral
Positive Factors
Dividends and Valuation
The stock is trading below its 5-year average while offering an attractive yield of approximately 6%.
Earnings and Growth
StarHub reported a higher 2024 service revenue (+3.9% yoy) and PATMI (+7.7% yoy), driven by the broadband and enterprise segments.
Financial Performance
StarHub's cybersecurity venture Ensign is a profitable business and has the potential to grow at a CAGR of 21% over 2024-2026, led by Ensign.
Negative Factors
Competition
The group’s mobile segment continues to face ongoing headwinds amid stiff pricing competition.
Financial Obligations
The 700MHz spectrum payment of S$282mn is payable in FY25, which creates minimal value and results in a 10% drag on earnings.
Industry Profitability
Competitive pressure from lower-priced plans will hurt pricing across the portfolio, dragging down industry profitability.
StarHub (CC3) vs. S&P 500 (SPY)
Market Cap
$2.01B
Dividend Yield5.13%
Average Volume (3M)1.07M
Price to Earnings (P/E)13.0
Beta (1Y)0.29
Revenue Growth-0.23%
EPS Growth11.17%
CountrySG
Employees1,635
SectorCommunication Services
Sector Strength84
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.09
Shares Outstanding1,731,651,500
10 Day Avg. Volume875,860
30 Day Avg. Volume1,072,213
Financial Highlights & Ratios
PEG Ratio1.17
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$1.35Price Target Upside16.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
StarHub Business Overview & Revenue Model
Company DescriptionStarHub Ltd is a leading telecommunications and digital service provider based in Singapore. The company operates across various sectors, including mobile, broadband, pay television, and enterprise solutions. StarHub offers a wide range of products and services, such as mobile network services, high-speed internet access, digital TV packages, and end-to-end ICT solutions for businesses, helping to connect individuals and enterprises across the region.
How the Company Makes MoneyStarHub generates revenue through multiple streams. The primary revenue source is its mobile services, which include voice, data, and value-added services provided to both consumer and enterprise customers. Additionally, the company earns income from its broadband and pay television services, offering subscription-based plans to residential and business customers. StarHub also provides enterprise solutions, including managed services, cloud computing, and cybersecurity services, contributing significantly to its earnings. Strategic partnerships with content providers and technology companies enhance its service offerings, further driving revenue growth. The company’s diverse portfolio and integrated service approach enable it to capture a broad customer base and create multiple avenues for revenue generation.
StarHub Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.37B | 2.37B | 2.33B | 2.04B | 2.03B | Gross Profit |
| 1.26B | 700.60M | 1.14B | 1.07B | 470.60M | EBIT |
| 224.40M | 226.40M | 154.70M | 231.80M | 192.70M | EBITDA |
| 484.20M | 393.30M | 400.70M | 513.20M | 539.60M | Net Income Common Stockholders |
| 160.50M | 141.70M | 62.20M | 149.30M | 157.90M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 539.60M | 509.60M | 573.60M | 832.80M | 415.40M | Total Assets |
| 3.12B | 3.04B | 3.13B | 3.24B | 2.93B | Total Debt |
| 1.26B | 1.24B | 1.27B | 1.50B | 1.53B | Net Debt |
| 721.10M | 741.70M | 695.30M | 663.90M | 1.11B | Total Liabilities |
| 2.35B | 2.33B | 2.45B | 2.55B | 2.50B | Stockholders Equity |
| 607.80M | 568.80M | 530.40M | 589.50M | 338.40M |
| Cash Flow | Free Cash Flow | |||
| 162.20M | 185.90M | 222.20M | 484.60M | 344.50M | Operating Cash Flow |
| 361.30M | 358.60M | 383.70M | 657.10M | 535.70M | Investing Cash Flow |
| -101.90M | -224.90M | -235.00M | -286.90M | -237.50M | Financing Cash Flow |
| -221.80M | -209.60M | -403.60M | 47.80M | -11.40M |
StarHub Technical Analysis
Negative
1.16
Price Trends
1.16
Positive
1.17
Negative
1.18
Negative
Market Momentum
<0.01
Negative
50.60
Neutral
13.10
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:CC3, the sentiment is Negative. The current price of 1.16 is above the 20-day moving average (MA) of 1.15, above the 50-day MA of 1.16, and below the 200-day MA of 1.18, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.60 is Neutral, neither overbought nor oversold. The STOCH value of 13.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:CC3.
StarHub Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $15.73B | 15.81 | 6.32% | 4.77% | 1.54% | 4.48% | |
77 Outperform | S$15.40B | 23.44 | 35.32% | 2.36% | 8.76% | 15.45% | |
76 Outperform | $11.71B | 15.48 | 7.61% | 6.15% | -1.52% | 313.98% | |
69 Neutral | $2.01B | 13.05 | 40.65% | 5.13% | -0.23% | 11.17% | |
63 Neutral | $4.21B | 21.25 | 8.14% | 1.11% | 60.52% | ― | |
59 Neutral | $13.74B | 7.33 | -2.74% | 3.82% | 2.18% | -37.91% | |
59 Neutral | $62.72B | ― | -0.40% | 4.19% | -2.10% | -103.46% |
* Communication Services Sector Average
Performance Comparison
SG:CC3
StarHub
1.17
0.05
4.37%
SG:S68
Singapore Exchange
14.38
5.33
58.97%
SG:S58
SATS
2.89
0.37
14.77%
SG:A17U
CapitaLand Ascendas REIT
2.67
0.24
9.70%
SG:C38U
CapitaLand Mall
2.12
0.30
16.74%
SG:Z74
Singtel
3.87
1.62
71.62%
StarHub Earnings Call Summary
Earnings Call Date:Feb 20, 2025
(Q3-2024)
| % Change Since: -5.38%|
Next Earnings Date:May 08, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong growth in the enterprise and broadband segments, and strategic initiatives in mobile leading to subscriber growth. However, there were challenges in mobile revenue decline and timing issues in cybersecurity revenues. The sentiment is balanced with a slight positive outlook due to anticipated recoveries.Q3-2024 Updates
Positive Updates
Enterprise Growth
Enterprise segment showed strong performance with Network Solutions growing 9.4% year-on-year and Managed Services growing by about 25% year-on-year.
Broadband Revenue Increase
Broadband revenue grew 2.8% quarter-on-quarter. This growth was driven by the penetration of ultra-speed and high-speed plans.
Free Cash Flow and Leverage
Free cash flow remains strong at $167.2 million for 9 months 2024, with net debt-to-EBITDA reduced to 1.25x.
EBITDA and Net Profit Growth
EBITDA increased to $114.6 million for the quarter and $341.2 million for the 9 months, with net profit after tax up 11% year-on-year at $40.4 million.
Mobile Subscriber Addition
55,000 mobile subscribers were added in the third quarter, showing strong performance compared to competitors.
Negative Updates
Mobile Revenue Decline
Mobile revenue declined 5% year-on-year and 0.8% quarter-on-quarter due to competitive pressures and market dynamics.
Entertainment Segment Decline
Quarter-on-quarter and year-on-year declines in the Entertainment segment were noted, attributed to consumer cord-cutting and OTT churn.
Cybersecurity Revenue Challenges
Cybersecurity segment faced timing issues in revenue recognition, leading to missed revenue in Q3 but expected recovery in Q4.
Company Guidance
In the Q3 2024 earnings call for CC3.SI, the executives provided detailed guidance on various financial metrics and their strategic direction. The company's service revenue remained flat year-to-date, with a quarter-on-quarter decline attributed to timing issues in their cybersecurity business, Ensign. Despite this, they anticipate strong revenue recognition in Q4, maintaining their full-year forecast for year-on-year growth. The Service EBITDA showed growth, driven by high-margin enterprise segments and operational efficiencies. The net debt-to-EBITDA ratio improved to 1.25x, enhancing financial flexibility. Mobile revenue declined 5% year-on-year, but only 0.8% quarter-on-quarter, reflecting resilience compared to competitors. The company added 55,000 subscribers in Q3 and expanded its broadband subscriber base by 2.8% quarter-on-quarter. In the enterprise segment, network solutions and managed services grew 9.4% and 25% year-on-year, respectively. The executives reiterated their commitment to the DARE+ transformation, expecting to complete the spend by mid-2025, and maintaining a focus on prudent capital management and potential consolidation opportunities.StarHub Corporate Events
StarHub Prepares for Upcoming AGM and EGM with Shareholder Engagement
Apr 16, 2025
StarHub Ltd, a telecommunications company, is addressing shareholder inquiries ahead of its 27th Annual General Meeting and Extraordinary General Meeting scheduled for April 25, 2025. The company has provided responses to significant questions related to resolutions for approval, referencing its Annual Report 2024 and other shareholder communications. The outcomes and minutes of these meetings will be made available on StarHub’s Investor Relations website and SGXNet following the events.
StarHub Transfers Treasury Shares to Fulfill Share Awards
Mar 26, 2025
StarHub Ltd announced the transfer of 1,773,878 treasury shares on March 26, 2025, to fulfill share awards under its Performance Share Plan 2014 and Restricted Stock Plan 2024. This transfer reduces the company’s treasury shares from 11,651,805 to 9,877,927, slightly decreasing the percentage of treasury shares against the total issued shares, which reflects StarHub’s commitment to rewarding its employees and aligning their interests with shareholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.