Maybank Securities analyst Hussaini Saifee is maintaining his “buy” call on Singapore Telecommunications(Singtel), with an unchanged target price of $4.30, even as its Australian subsidiary Optus faces an A$100 million ($83.5 million) penalty.

On Wednesday, the Australian Competition and Consumer Commission (ACCC) said Optus agreed to pay the fine for “unconscionable conduct” and “inappropriate sales practices” between August 2019 and July 2023. Optus has also signed an undertaking that it will improve its internal systems, including reviewing its complaint handling and improving staff training.

The financial penalty is expected to have minimal impact on Singtel. Saifee notes the group has already provisioned for the penalty in its FY2025 accounts, and sees “no effect to its dividend policy, $2.5 billion FY2026 capex guidance, or ongoing asset recycling programme”.