Singtel rises 3% on robust earnings; Keppel slides after Simba-M1 deal

SINGAPORE - Telco consolidation made headlines last week, with StarHub fully acquiring MyRepublic Broadband and Keppel selling M1’s telecoms operations.

Keppel is

divesting its 83.9 per cent stake in M1’s telecoms business to Simba Telecom

, a unit of Australia-listed company Tuas, in a $1.43 billion deal.

Shares of the global asset manager and operator fell after the Aug 11 announcement, with some observers noting that it booked an accounting loss, or loss on paper, for the sale. The stock declined 1.52 per cent from last week’s close to $8.45 on Aug 15.

The estimated $222 million accounting loss for Keppel stems from goodwill and intangible assets tied to the telco business. Keppel first invested in M1 in 1994 and was later involved in its privatisation in 2019.

At a media briefing, Keppel chief executive Loh Chin Hua said that the company has been making an effort to divest non-core assets.

“Our narrative is that we’re going to create an asset-light ‘New Keppel’. This particular business is no longer core to us. Being able to monetise it is probably the most important point,” he added.

The other telco consolidation came on Aug 12, the day after the Keppel announcement.

StarHub, which already held a 50.1 per cent stake in MyRepublic Broadband, said it acquired the remaining 49.9 per cent share in a roughly $105 million deal, in a move aimed at strengthening StarHub’s strategy in the broadband market.

StarHub CEO Nikhil Eapen said: “We’re in a phase of consolidation, and we’re not just watching it unfold, we’re shaping it.”

He added: “As the market shifts, scale, quality and resilience matter more than ever. Smaller players may find it harder to sustain, especially without robust platforms.”

Singapore telcos post mixed results

Analysts noted that the industry consolidation could benefit Singapore’s two listed telcos – StarHub and Singtel – by helping to ease intense price competition in an overcrowded market.

For StarHub, the deal also comes amid weakening performance.

Singapore’s second-largest telco on Aug 14 posted a

41.7 per cent year-on-year fall in first-half earnings

to $47.9 million.

The lower profit was partly due to a one-off forfeiture payment of $14.1 million for the return of certain spectrum rights.

Excluding this sum, net profit rose to $62 million, though this still works out to a 23 per cent drop year on year.

Mr Eapen said the telco intends “to remain aggressive across brands and segments in the domestic consumer market to position for eventual market recovery”.

StarHub shares closed at $1.18 on Aug 15, down 3.28 per cent from last week’s close.

In contrast, Singtel

ended the week higher

after an initial fall following Keppel’s Aug 11 announcement.

Its stock rose 3 per cent from Aug 8 to close at $4.10 on Aug 15.

The telco on Aug 13 announced that its underlying first-quarter net profit

rose 13.9 per cent year on year

to $686 million, driven by higher earnings from its Australian unit Optus and contributions from regional associates, including India’s Bharti Airtel.

Singtel CEO Yuen Kuan Moon expects the telecom operator’s data centre business to be a “bright spot” in the current financial year as its data centres in Singapore and Thailand near completion.

Property stocks soar on robust earnings

Shares of real estate-related companies mostly rose last week on robust earnings.

Real estate services provider PropNex jumped more than 30 per cent in the past week to $2.03, while its peer Apac Realty was up 13 per cent from Aug 8 to close at 72 cents on Aug 15, driven by higher home sales.

PropNex on Aug 12 posted record net profit of $42.3 million for its first half-year, a 122.4 per cent increase from the year before and surpassing analysts’ estimates. Apac Realty’s net profit more than doubled to $11.3 million in the same period, the company said on Aug 8.

Analysts said that sales momentum could remain strong, supported by a pipeline of upcoming launches.

Developer City Developments Limited (CDL) was up 6.3 per cent to $6.73 and UOL rose more than 3 per cent over the week to close at $7.27. CDL’s first-half net income rose 3.9 per cent to $91.2 million, with revenue up 8 per cent to $1.69 billion, driven by the fully sold executive condominium project Copen Grand.

A special interim dividend of three cents per share was proposed, up from the two cents it paid out a year earlier.

CEO Sherman Kwek

told a briefing on Aug 13

that CDL will try to pay one-third of its net income as dividends every year and reward shareholders when divestments are made.

Meanwhile, Pan Pacific and Parkroyal owner UOL’s first-half net profit increased 58 per cent to $205.5 million due to strong performance from property development and property investments, and other gains from the disposal of Parkroyal Yangon, the firm said on Aug 13.

CapitaLand Investment (CLI) shares fell 2.5 per cent from Aug 8, closing at $2.70 on Aug 15, on the back of weaker earnings.

First-half earnings dropped 13 per cent

, attributed to loss of contributions from divested assets, lower fund performance and transaction fees, and absence of a one-off tax write-back.

CLI also attributed part of its performance to the downturn in China, where it has 18 retail and commercial properties.

Group CEO Lee Chee Koon urged investors to be patient with the firm’s investment returns, hinting at an improved performance in the second half of 2025 when SC Capital and Wingate are expected to deliver stronger returns.

Dezign Format makes SGX debut

Spatial design specialist Dezign Format

surged 40 per cent in its trading debut

on the Singapore Exchange’s Catalist board on Aug 15, closing at 28 cents from its initial public offering (IPO) price of 20 cents.

Dezign Format CEO Mike Chong said that the proceeds from the IPO will support the firm’s regional expansion strategy, which includes establishing a Malaysian production facility and sales offices in Thailand and Vietnam.

The company joins other firms, such as NTT DC Real Estate Investment Trust and Lum Chang Creations, to be listed on Singapore’s stock exchange in 2025 amid a revival in IPOs.

Another local firm, semiconductor optics company MetaOptics, is expected to list on the local bourse after it filed its prospectus on July 30 to list on the Catalist board.

The group said it intends to use the IPO proceeds for areas such as product development, research and development, and strategic partnerships.

Other market movers

Shares of CNMC Goldmine surged more than 18 per cent over last week to close at a record 64.5 cents.

The gold mining company posted strong earnings of US$15.8 million (S$20.3 million) for the first half, up 256.1 per cent year on year, driven by higher production and surging gold prices.

Investment manager Yangzijiang Financial was up 9.3 per cent to $1.06, as first-half net profit increased 28 per cent to $137.7 million. This was largely attributed to the reversal of credit loss allowances, increased contributions from maritime joint ventures and net foreign exchange gains.

What to look out for this week

On Aug 18, Singapore will release its non-oil domestic exports data for July. DBS chief economist Taimur Baig forecasts a 6 per cent year-on-year contraction, marking a reversal from June’s growth as an earlier boost from the front-loading of orders ahead of US tariff hikes tapers off.

Sats is scheduled to release its business update for the first quarter ended June 30 on Aug 20, after the market closes.