StarHub (SGX:CC3) Margin Compression To 3.7% Tests Bullish Growth Narrative

Simply Wall St.02-13

AdvertisementStarHub (SGX:CC3) FY 2025 Earnings Snapshot StarHub (SGX:CC3) has put fresh numbers on the table for FY 2025, with first half revenue of S$1.13 billion and basic EPS of S$0.025582 setting...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2611154704?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/9031000-choice1-main-header/1585186715767","is_english":true,"pubTime":"2026-02-13 19:22","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2611154704","market":"us","top_or_hot":-1,"title":"StarHub (SGX:CC3) Margin Compression To 3.7% Tests Bullish Growth Narrative","media":"Simply Wall St.","content":"<div>\n<p>AdvertisementStarHub (SGX:CC3) FY 2025 Earnings Snapshot StarHub (SGX:CC3) has put fresh numbers on the table for FY 2025, with first half revenue of S$1.13 billion and basic EPS of S$0.025582 setting...</p>\n\n<a href=\"https://simplywall.st/stocks/sg/telecom/sgx-cc3/starhub-shares/news/starhub-sgxcc3-margin-compression-to-37-tests-bullish-growth\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>StarHub (SGX:CC3) Margin Compression To 3.7% Tests Bullish Growth Narrative</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nStarHub (SGX:CC3) Margin Compression To 3.7% Tests Bullish Growth Narrative\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-13 19:22 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/sg/telecom/sgx-cc3/starhub-shares/news/starhub-sgxcc3-margin-compression-to-37-tests-bullish-growth><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>AdvertisementStarHub (SGX:CC3) FY 2025 Earnings Snapshot StarHub (SGX:CC3) has put fresh numbers on the table for FY 2025, with first half revenue of S$1.13 billion and basic EPS of S$0.025582 setting...</p>\n\n<a href=\"https://simplywall.st/stocks/sg/telecom/sgx-cc3/starhub-shares/news/starhub-sgxcc3-margin-compression-to-37-tests-bullish-growth\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BLSX","symbol_name":"Tradr 2X Long BLSH Daily ETF","start_time":0,"source_url":"https://simplywall.st/stocks/sg/telecom/sgx-cc3/starhub-shares/news/starhub-sgxcc3-margin-compression-to-37-tests-bullish-growth","article_id":"2611154704","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9031000-choice1-main-header/1585186715767"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/sg/telecom/sgx-cc3/starhub-shares/news/starhub-sgxcc3-margin-compression-to-37-tests-bullish-growth","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2611154704","pubTimestamp":1770981722,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"StarHub (SGX:CC3) FY 2025 Earnings Snapshot\nStarHub (SGX:CC3) has put fresh numbers on the table for FY 2025, with first half revenue of S$1.13 billion and basic EPS of S$0.025582 setting the tone for how the year is shaping up. The company has seen revenue move from S$1,104.9 million in 1H 2024 to S$1,128.8 million in 1H 2025. Over those same periods, basic EPS shifted from S$0.045557 to S$0.025582, giving investors a clear line of sight on how the top and bottom lines are tracking as...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BLSX":"Tradr 2X Long BLSH Daily ETF","BK6048":"无线电信业务","BK6513":"电信服务股","BLSG":"2倍做多BLSH ETF-Leverage Shares","BK4112":"金融交易所和数据","CC3.SI":"星和"},"translate_title":"StarHub(SGX：CC3)利润率压缩至3.7%考验看涨增长叙事","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BLSX":0.6,"BLSG":0.6,"CC3.SI":1.98},"content_text":"AdvertisementStarHub (SGX:CC3) FY 2025 Earnings Snapshot StarHub (SGX:CC3) has put fresh numbers on the table for FY 2025, with first half revenue of S$1.13 billion and basic EPS of S$0.025582 setting the tone for how the year is shaping up. The company has seen revenue move from S$1,104.9 million in 1H 2024 to S$1,128.8 million in 1H 2025. Over those same periods, basic EPS shifted from S$0.045557 to S$0.025582, giving investors a clear line of sight on how the top and bottom lines are tracking as margins come under closer scrutiny. See our full analysis for StarHub. With the headline figures in place, the next step is to see how this earnings print lines up with the widely held narratives around StarHub’s growth, risks, and profitability, and where the latest margin picture may challenge those views. See what the community is saying about StarHub SGX:CC3 Earnings & Revenue History as at Feb 2026 Margins Squeezed as Net Profit Falls to S$44m  Net income for 1H 2025 came in at S$44 million versus S$78.2 million in 1H 2024, while trailing 12 month net income is S$86.4 million, which sits well below the S$152.7 million level from the prior 12 month period. Analysts' consensus view highlights cost efficiencies and higher margin enterprise and cybersecurity segments as profit drivers. However, the drop in net profit margin from 6.4% to 3.7% over the last year creates a tension with that bullish angle.\n     Consensus points to strong free cash flow and the DARE+ program as future margin supports, but the current 3.7% margin compared with 6.4% suggests these benefits are not fully reflected in the latest trailing numbers. The same consensus expects improved profitability from enterprise and cybersecurity, while the reported entertainment and mobile revenue pressures in the risk section help explain why recent margins look tight despite that optimism.    Valuation Gap vs DCF Fair Value  With the share price at S$1.13 versus a cited DCF fair value of about S$4.20, the stock is described as trading materially below that model, and the current P/E of 22.6x sits under the 24.6x peer average but above the 20.2x Asian wireless telecom industry level. What stands out for the bullish argument is that forecast earnings growth of about 21.3% per year is paired with this large DCF gap. Bears, however, flag that margins at 3.7% and five year earnings declining about 2.7% per year make it harder to lean solely on valuation signals.\n     Bulls point to analysts expecting earnings of S$182.1 million and EPS of S$0.10 by around 2028, which is a step up from the S$118.5 million trailing 12 month net income cited in the narrative. Yet the current 3.7% margin shows that earnings quality, while described as high, is being earned on thin profitability. Skeptics also point to the dividend yield of 5.49% not being well covered by free cash flow and to high debt levels, which sit alongside the P/E and DCF figures and give investors more to think about than just the apparent discount to DCF fair value.    On a valuation story like this, many investors want to see how the full bull thesis stacks up against the current P/E, margin profile and that wide DCF gap, so it can be helpful to walk through the detailed optimistic case step by step. 🐂 StarHub Bull Case Dividend, Debt and Margin Risks  The reported 5.49% dividend yield is described as not being well covered by free cash flow, against the backdrop of trailing 12 month net profit of S$86.4 million and a net profit margin that has slipped from 6.4% to 3.7%, alongside commentary that the company carries a high level of debt. Bears focus on this combination, arguing that weaker margins and high leverage, plus upcoming spectrum and DARE+ related expenses, put pressure on the ability to sustain both earnings and dividends at current levels.\n     The data point that free cash flow does not comfortably cover the 5.49% yield supports that bearish angle, especially when set against margin compression from 6.4% to 3.7% over the last year. Critics also tie in the decline in mobile and entertainment revenue cited in the risks section with the lower trailing net income of S$86.4 million versus S$152.7 million previously, arguing that these segments need to stabilise for the balance sheet and payout to look safer.    If you are weighing those payout and leverage worries against the earnings growth forecasts, it can be useful to see how a more cautious narrative frames the same numbers before you decide what matters most for your own thesis. 🐻 StarHub Bear Case  Next Steps To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for StarHub on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves. See the numbers differently? Take a couple of minutes to test your own view against this data and turn it into a clear narrative: Do it your way A great starting point for your StarHub research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision. Explore Alternatives StarHub’s thinner 3.7% net profit margin, high debt, and dividend that is not well covered by free cash flow all point to elevated risk for cautious investors. If those pressure points make you uneasy, it could be worth shifting your attention toward 326 resilient stocks with low risk scores, where you can quickly find companies with sturdier financial footing and less balance sheet strain.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.42.1","shortVersion":"4.42.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2611154704","isCrawlerRequest":true}