Starhub -5th Sept

Starhub and M1 are the listed stocks in SGX besides Singtel in 2018 till M1 delists in 2019.

The volumes of the stock has dwindled over the past months.

Notice the fall of the shares as compared to Singtel. This is probably due to the porting of cable TV subscribers to fiber network. Some of Starhub customers may have churned to other providers.

It is interesting to note that there are many Doijs in the stock trend. These doijs do not follow the conventional logic of reversal but rather the down trend continues. 

It shows little support for the stock at the moment. Probably the sentiment of the stock is weak.

The chart shows the Q to Q based on 2018/2019. I guess they are trying to mask the seasonality of the business. It shows that top line has declined and they are controlling costs to achieve similar EBITDA. This is a worrying trend that the sector is in a consolidation mode,

Capex expenses has increased in Q2. Would be useful to understand where is the investment. 

The service ebitda is quite stable which is a positive sign.

It is interesting to note Singtel's cost of sale to revenue ratio is lower than Starhub at around 35%.

Profit after tax has declined in Q2 despite a stable service EBITDA

Free cash flow appears to be doing better. need to see next quarter if Starhub is conserving cash.

 The stock is almost at the lows of 2019.

Consensus seems to be optimistic due to the high dividends,

IMO :-

Looks like it is better do not touch this stock at the moment.

Question what is the entry level? If I would like to invest in telecom sector, Singtel appears to be a better proxy to the sector.

Please see my Disclaimer