Tuas (ASX:TUA): A growth story unfolding in Singapore’s telecom landscape
Pronounced ‘Too-As’, Tuas Limited (ASX:TUA) is a founder-led ASX-listed company providing telecommunications services, while owning and operating a mobile network in Singapore.
Back in April, I discussed Tuas here. Back then the share price was $3.82. Yesterday, it traded just above $6.00, and I believe further upside is possible.
Last week, Tuas demonstrated its capacity for robust growth and strategic execution, reporting strong financial and operational results for the first quarter of FY25.
Since its inception, Tuas has consistently grown its significant niche in Singapore’s highly competitive telecommunications market and the latest update underscores Tuas’s compelling growth story, solid fundamentals and favourable market dynamics.
Outstanding FY24 and strategic momentum
Executive Chairman David Teoh lauded Tuas’ successes in FY24, highlighting the company’s expanding foothold in mobile telecommunications and fixed fibre broadband. The company’s flagship mobile business, Simba, continues to outperform expectations. According to Teoh, the business has gained considerable traction, producing “very good financial results.”
This momentum has extended into FY25, with Tuas reporting quarterly revenue of S$35.5 million, reflecting impressive 33 per cent year-on-year growth. After achieving positive cash flow earlier in the calendar year, the company has now achieved positive net profit after tax (NPAT), signalling its ability to sustain profitability while scaling operations.
Operational excellence and market penetration
Under CEO Richard Tan’s leadership, Tuas has grown its active mobile services to 1.113 million subscribers, adding 60,000 new customers in just three months. This translates to a 10.7 per cent market share in Singapore – a significant achievement in a market dominated by legacy players.
Tuas isn’t stopping at mobile services. Its fibre broadband business is gaining traction, with more than 10,000 subscribers as of November, compared to 4,000 just a few months ago. Additionally, Singapore’s IMDA has allocated 10Gbps rollout grants, positioning Tuas to capture future demand in high-speed broadband services.
Financial highlights
Revenue: Quarterly revenue hit S$35.5 million, with an annualized run rate of S$142 million. Cash receipts were equally strong at S$38.2 million.
Earnings before interest, taxes, depreciation and amortisation (EBITDA): The company reported quarterly EBITDA of S$16.1 million, up 46 per cent year-on-year, with an annualized run rate of S$64.4 million.
Cash flow: Tuas reported a robust cash balance of S$62 million, providing flexibility for future investments and strategic initiatives.
Disciplined capital allocation
The company has reaffirmed its FY25 capital expenditure guidance of S$45 million to S$55 million, with Q1 capital expenditure (CapEx) at S$11.3 million – trending toward the lower end of the guidance range. This disciplined approach ensures efficient resource utilisation while supporting growth initiatives.
A compelling investment case
Tuas’ ongoing share price performance reflects investor confidence in its growth trajectory and execution capabilities, repeating Teoh’s TPG story in Australia. With strong fundamentals, increasing market penetration, and strategic investments in innovation, Tuas appears well-positioned for continued outperformance.
Looking ahead, Tuas plans to sustain mobile growth through product innovation and bolstering its fibre broadband presence. With dynamic market competition driving innovation and execution, Tuas remains a standout player in Singapore’s telecom space.
For investors seeking exposure to a rapidly growing telecommunications disruptor, and the possibility of a repeat performance of TPG under the same management, Tuas presents an opportunity worth investigating with what might be significant upside as Tuas becomes a full-service telecoms provider including to the corporate/ enterprise and government markets.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
