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StarHub
(SGX:CC3)
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Rating:60Neutral
Price Target:
S$1.00
â–¼(-1.96% Downside)
Action:Reiterated
Date:08/17/26
The score is held back primarily by weakened profitability, higher leverage, and recently pressured free cash flow, which raise financial risk despite stable operating cash flow. Offsetting this are supportive valuation (low P/E and high dividend yield) and improving technical momentum (price above key moving averages with positive MACD). The latest earnings call adds a balanced view: guidance and liquidity are positives, but core earnings remain fragile without one-off gains and competition-driven revenue/EBITDA pressure persists.
Positive Factors
Leading Singapore Market Position
Strong positions in mobile and broadband provide scale, brand visibility and a broad customer base for cross-selling. The widening broadband lead may support retention and monetization across StarHub, eight and MyRepublic over the medium term.
Negative Factors
Consumer Competition and Revenue Pressure
Persistent discounting and customer migration to cheaper plans can compress ARPU and weaken the consumer segment’s earnings base. This pressure is structural in a saturated market and may limit growth even where subscriber scale remains stable.
Read all positive and negative factors
Positive Factors
Negative Factors
Leading Singapore Market Position
Strong positions in mobile and broadband provide scale, brand visibility and a broad customer base for cross-selling. The widening broadband lead may support retention and monetization across StarHub, eight and MyRepublic over the medium term.
Read all positive factors
StarHub (CC3) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$1.84B
Dividend Yield5.61%
Average Volume (3M)1.11M
Price to Earnings (P/E)6.2
Beta (1Y)0.34
Revenue Growth-8.27%
EPS Growth136.03%
CountrySG
Employees1,637
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.17
Shares Outstanding1,731,651,500
10 Day Avg. Volume885,280
30 Day Avg. Volume1,114,336
Financial Highlights & Ratios
PEG Ratio-0.48
Price to Book (P/B)6.41
Price to Sales (P/S)0.82
P/FCF Ratio-78.04
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
S$1.14Price Target Upside11.27% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)0.02
Revenue Forecast (FY)S$2.27B
StarHub Business Overview & Revenue Model
Company Description
StarHub Ltd engages in the operation and provision of telecommunications services and other businesses relating to the info-communications industry for individuals and businesses in Singapore. The company operates through two segments, Telecommuni...
How the Company Makes Money
StarHub makes money primarily by charging customers recurring subscription and usage fees for telecommunications and related services, along with selling devices and enterprise solutions. Key revenue streams generally include: (1) Mobile services:...
StarHub Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Neutral
Balanced/Neutral. The call highlighted strong strategic positives — a fortified balance sheet (cash $515.7m), a large Ensign-related one‑off gain, robust enterprise order book growth (~49–50% YoY) and progress on 5G+ monetization and consumer brand positioning (StarHub, eight, MyRepublic). However, those positives are offset by significant near‑term operating pressures: group revenue down ~7% YoY, reported H1 EBITDA around $158.6m with participant‑referenced H1 EBITDA decline of ~24%, and weak underlying NPAT of $12.4m excluding the Ensign gain. Cost savings are in early stages and cybersecurity/IT investment is front‑loaded for 2026, so material margin recovery is expected later. On balance, highlights and lowlights are reasonably matched, supporting a neutral outlook for the call.Positive Updates
Reported Net Profit Boosted by One-Off Ensign Gain
Reported NPAT for H1 2026 was reported at approximately $257–258 million, driven by a one-off gain of $245.7 million from the partial divestiture/termination of Assigned Rights in Ensign; management retains a circa 38–39% stake in Ensign valued at about $322 million and is pursuing further monetization potentially within 2026.
Negative Updates
Revenue Decline Driven by Consumer Hypercompetition
Group revenue for H1 2026 was $744 million, down about 7% year‑on‑year, with material declines in the consumer segment due to resumed intense price competition and downgrades to value plans across the market.
Read all updates
Q2-2026 Updates
Positive
Negative
Reported Net Profit Boosted by One-Off Ensign Gain
Reported NPAT for H1 2026 was reported at approximately $257–258 million, driven by a one-off gain of $245.7 million from the partial divestiture/termination of Assigned Rights in Ensign; management retains a circa 38–39% stake in Ensign valued at about $322 million and is pursuing further monetization potentially within 2026.
Read all positive updates
Company Guidance
StarHub reiterated full‑year guidance with an EBITDA target of 75%–80% of 2025 EBITDA and expects positive free cash flow for FY2026, while H2 CapEx and IT/cybersecurity/network investment will ramp. Key H1 metrics: revenue $744m (‑7% YoY), EBITDA $158.6m, reported NPAT $258.1m (including a $245.7m one‑off Ensign gain; underlying NPAT $12.4m), operating cash flow $124.2m and free cash flow $40.6m, cash/bank balances $515.7m, net debt/EBITDA ~2.4x and only ~S$70m debt maturing H1 2027. Other targets/notes: H1 CapEx paid $83.6m (8.6% of revenue), interim dividend $0.03/share (reaffirming full‑year at the higher of $0.06/share or policy), cost‑savings goal $70m p.a. by 2028 (≈10% achieved to date), order‑book growth ~49–50% YoY with regional enterprise revenue +5% and managed services +24%, and potential further monetisation of the remaining ~38–39% Ensign stake (valued at ~$322m) during 2026.StarHub Financial Statement Overview
Summary
Income Statement
50
Neutral
Balance Sheet
34
Negative
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.19B | 2.35B | 2.37B | 2.37B | 2.33B | 2.04B |
| Gross Profit | 557.30M | 625.70M | 1.26B | 700.60M | 1.14B | 1.07B |
| EBITDA | 355.60M | 408.20M | 481.30M | 393.30M | 400.70M | 513.20M |
| Net Income | 294.00M | 86.40M | 160.50M | 141.70M | 62.20M | 149.30M |
Balance Sheet | ||||||
| Total Assets | 3.07B | 3.61B | 3.12B | 3.04B | 3.13B | 3.24B |
| Cash, Cash Equivalents and Short-Term Investments | 515.70M | 857.10M | 539.60M | 509.60M | 573.60M | 832.80M |
| Total Debt | 1.68B | 1.99B | 1.26B | 1.24B | 1.27B | 1.50B |
| Total Liabilities | 2.56B | 3.16B | 2.35B | 2.33B | 2.45B | 2.55B |
| Stockholders Equity | 503.00M | 300.60M | 607.80M | 568.80M | 530.40M | 589.50M |
Cash Flow | ||||||
| Free Cash Flow | 147.00M | -24.70M | 162.20M | 185.90M | 222.20M | 484.60M |
| Operating Cash Flow | 320.10M | 353.80M | 361.30M | 358.60M | 383.70M | 657.10M |
| Investing Cash Flow | -180.90M | -364.80M | -101.90M | -224.90M | -235.00M | -286.90M |
| Financing Cash Flow | -106.10M | 326.80M | -221.80M | -209.60M | -403.60M | 47.80M |
StarHub Technical Analysis
Positive
1.02
Price Trends
1.03
Positive
1.01
Positive
1.03
Positive
Market Momentum
0.02
Positive
56.84
Neutral
21.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:CC3, the sentiment is Positive. The current price of 1.02 is below the 20-day moving average (MA) of 1.07, below the 50-day MA of 1.03, and below the 200-day MA of 1.03, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 56.84 is Neutral, neither overbought nor oversold. The STOCH value of 21.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:CC3.
StarHub Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | S$72.57B | 12.94 | 20.52% | 4.15% | 0.81% | 39.56% | |
66 Neutral | S$3.80B | 45.79 | 3.63% | 5.45% | 1.58% | -12.65% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | S$1.84B | 6.21 | 73.17% | 5.88% | -8.27% | 136.03% | |
60 Neutral | S$148.12M | 3.72 | 2.35% | 12.35% | -2.09% | 189.61% |
* Communication Services Sector Average
SG:CC3
StarHub
1.07
0.01
1.13%
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30.96%
StarHub Corporate Events
StarHub leans on enterprise growth and cost savings to defend dividend amid tough market
May 26, 2026
StarHub reported FY2025 service revenue of about S$2 billion and EBITDA of S$400 million, with net profit of S$100 million excluding a spectrum penalty, while optimising capital expenditure below guidance and maintaining a strong balance sheet. Ma...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.