Singtel: SGD 3.1 billion in Write-Downs, but TPG Regional Network Sharing Deal a Slight Positive

We retain our fair value estimate for narrow-moat Singtel at SGD 2.40 following the company’s announcement of SGD 3.1 billion of write-downs related to Optus and the Asia-Pacific cybersecurity business, and a regional mobile radio access network sharing deal with TPG. The stock looks fairly valued at these levels and we suspect the company will need to show maintained earnings growth from its core operations before it gets a positive rerating.