StarHub Earnings: Dare+ Spending Largely Done by End-2024; Fair Value to SGD 1.26 From SGD 1.10

We increase our fair value estimate for StarHub to SGD 1.26 from SGD 1.10 as the Dare+ costs move toward history. While we don’t forecast the stable-state incremental net profit of SGD 80 million from Dare+ from 2027 onward that management is targeting, just the removal of the Dare+ expenditures from the cost base should drive some profit growth in 2025 and 2026. As long as the new profit level can be held from then, the shares look to have good value at these levels on a price/earnings ratio of 11 times and a dividend yield of 7%.