Comparison of StarHub, M1 and Singtel – 31 December 2011

StarHub and M1 released their full year results ended 31 December 2011. Singapore Telecom (Singtel) has a different year-end, ending 31 March 2012. It released its nine-month results ended 31 December 2011 instead.

The table below shows comparisons using some key ratios and results.

StarHub    (1 year) M1 (1 year) Singtel       (9 months)
Net Profit $315.5m (+19.9%) $164.1m (+4.5%) $2,699m          (- 4.7%)
EPS 18.4 cents 18.1 cents 16.9 cents
Dividend 20 cents 14.5 cents 6.8 cents (interim)
Dividend payout ratio 108% 80% NM
Net Asset Value per share 1.3 cents 35.5 cents $1.39
Share Price – 27 Feb $2.92 $2.47 $3.10
Dividend yield 6.8% 5.8% NM

NM – not meaningful

One year net profit for StarHub increased 19.9% to $315.5 million whereas M1 increased its net profit by 4.5% to $164.1 million. Singtel’s nine month profit was $2,699 million which was down 4.7% compared to previous corresponding period.

Between StarHub and M1, earnings per share (EPS) for StarHub was higher at 18.4 cents and M1 was 18.1 cents. Singtel’s EPS at nine-month mark was 16.9 cents. There is another 3 months before we know the total earnings per share for Singtel.

StarHub proposed total dividend for FY2011 of 20 cent despite a lower earnings per share (18.4 cents). Dividend payout is 108%. Based on today’s share price, dividend yield is 6.8%. StarHub intended to maintain same 20 cents dividend for this year FY2012.

M1 proposed 14.5 cents total dividend, paying out 80% of earnings. Dividend yield is lower at 5.8%. Both StarHub and M1 offered very good dividend yield.

No similar comparison is done for Singtel. In my earlier post, a statement was made that over the 10-year period to 31 March 2011, total shareholder payout was 76 per cent of earnings on average. All three telco companies gave out good dividends should they continue to earn increasing profits based on historical records.

The table above also provides you with a sense of net asset value per share and the share prices as of today for comparison.

Copyright © 2012, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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1 Response to Comparison of StarHub, M1 and Singtel – 31 December 2011

  1. Nathan says:

    Very Informative and helpful. Thanks

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