STARHUB

Starhub - StarHub Ltd., an integrated info-communications company, provides information, communication, and entertainment services for consumer and corporate markets in Singapore. It operates a mobile network that provides 4G, 3G, and 2G services; and manages an HFC network that delivers multi-channel pay TV services, including HDTV, Internet TV, and on-demand services, as well as ultra-high speed residential broadband services. The company also provides business solutions comprising mobile plans; mobile value-added and roaming services; office broadband, enterprise Internet, and wireless solutions; office line solutions, such as integrated services digital network, SIP voice, PBX, and unified and business fiber; conferencing, international calling, directory enquiry, and unified communications-as-a-service solution services; data connectivity solutions; Internet and IP solutions; and business voice and IDD solutions. In addition, the company offers data center and cloud computing solutions; and wholesale and carrier services. Further, it offers subscription television and television broadcasting services. The company was founded in 1998 and is based in Singapore. StarHub Ltd. is a subsidiary of Asia Mobile Holdings Pte. Ltd.

NAV of 8.1 cents. Rolling EPS is about 14.1 cents. PE is about 18.1 times.

Annual Dividend of 16 cents. Payable quarterly.

Now let us take a look at the financial numbers to see how it has fared for the past five years.

Total revenue has been stabilising around the range of 2370m to 2400m.

Gross Profit has been constantly declining from 1079.8M ( 2013) to 978.2m(2017). 

Net Profit has seen the biggest fall from 379.5m (2013) to 249m(2017). A fall of almost 34%.

Totat Current Assets is 832.7m versus Total Liabilities of 2007.1m( 2017) . Looks like the debts level is pretty high.

Gearing is about 85% ( seems very high) Total Liabilities of 2007.1 divided by Total Assets of 2352.

Operations cash flow has been declining from 594.7m (2013) to 517.2m(2017) .

Return of Assets & Return of Equity has also been decreasing from 2013 to 2017 as being reflected on the financial nos.

Net Income margin has also been declining from 16% to about 10.37%.

Looking from the yield perspective of 16 cents per annum that will give a yield of about 6.56% base on current price of $2.44 per share. Yield looks very attractive. I am Not sure if this is sustainable . Investor has to do their own due diigence.

The recent announcement (https://www.channelnewsasia.com/news/singapore/starhub-sunseap-electricity-sell-jurong-10054202) :
Local telco StarHub on Monday (Mar 19) announced its intention to go beyond its traditional business of offering mobile, pay TV and broadband services to venture into the electricity sector.

In a press release, the telco said it is joining forces with local solar energy provider Sunseap to sell electricity at the soft launch of the Open Electricity Market in Jurong next month. 

There will be two clean energy subscription plans offered by both companies: Green Life and Green Save. 

Green Life is a 100 per cent clean energy plan targeting environmentally conscious customers. This means they will receive electricity fully produced by Sunseap’s solar systems and this will be charged at the usual regulated electricity tariff, the press release explained. 

The current electricity tariff is 21.56 cents per kilowatt hours (kWh), according to the Energy Market Authority’s (EMA) website. The tariff for the next quarter has not been announced yet.

As for Green Save, customers will receive 5 per cent clean energy and get a 20 per cent discount off the regulated tariff, the companies said.

Looks like a new business tie-up to boost their total revenue. It may take sometimes to see the overall result.

From TA point of view, It is on a long term downtrend as reflected on the chart.

It has fallen from the high of $2.99 on 24th Jan 2018 to a low of $2.37 .
It has managed to bounce-off from $2.37 to close higher at 2.44 yesterday.
It is still rather weak and bearish.
It will need to rise above $2.50 and above in order to reverse this downtrend.
not a call to buy or sell.
dyodd.