David Teoh’s new telco, TUA is a $4bn ASX-listed telecommunications company primarily engaged in owning and operating a mobile network in Singapore. When TPG merged with Hutchison’s Australian assets to form the major telco in Australia, its Singapore business was spun out as TUA. The company turned profitable in FY25, reporting S$3.0 million NPAT on S$73.2 million revenue, driven by strong growth in mobile and broadband services. Earnings (EBITDA) rose 48% to S$33.1 million, supported by a growing subscriber base and operational efficiencies. The company ended the year with S$55.3 million cash, completed its 10Gbps fibre rollout, and is preparing for further growth, including the planned acquisition of M1 for ~$A1.7bn.
The M1 acquisition is expected to position Tuas as the third-largest mobile operator in Singapore and is anticipated to be earnings-per-share accretive from the first year after completion. The stock surged almost 50% after the deal was announced last month, with $385mn raised at $5.51, a very nice placement! The deal gives TUA scale and takes it from challenger to potential market leader with plenty of revenue and cost synergies moving forward. Reclusive billionaire David Teoh has done it before with TPG and looks positioned to do it again, owning ~32% of TUA, his track record is impressive and one to be backed in our opinion – it’s still early days in terms of analyst following TUA, but the $10 region is already being tossed around with revenue forecast to jump by ~50% from FY24 to FY26.
- We like the risk/reward towards TUA, especially in the $7-7.50 region.
