Shares in Tuas Ltd (ASX: TUA) have taken a beating over the past year, sliding more than 75% in value.
But the analysts at Morgan Stanley see a buying opportunity at these levels, and have an overweight recommendation on the Singapore-based telco's shares with a bullish share price target, which I'll get to shortly.
Tuas just this week announced its full-year results. Let's see how they fared.
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Solid rise in revenue and profit
Tuas reported revenue of S$187.6 million for the year, up 24%, with underlying EBITDA coming in at S$83.8 million, up 22%.
Executive Chair David Teoh said in the report that the company's Simba division "achieved strong subscriber growth and solid financial performance''.
He went on to say:
Despite intensifying competition in Singapore's telecommunications sector, the company successfully expanded both mobile and fixed broadband services. Active mobile services increased from 1,254,000 at the end of FY2025 to 1,458,000 as at 31 July 2026. Our fibre broadband business closed the year with 62,000 subscribers. Revenue grew by 24% year-on-year, while EBITDA on an underlying basis rose by 22% to S$83.8 million. Cashflow generation remained strong.
Mr Teoh said the company was developing new products for the Singapore market, which it intended to launch this financial year.
ASX telco shares looking cheap
Morgan Stanley said Tuas had been a game-changer for the Singaporean telco market.
They said:
TUA has significantly altered the Singapore mobile market via industry wide ARPU (average revenue per user) reductions and differentiated deals for consumers. It sees telcos' SMB and Enterprise customers as offering a similar opportunity. Simba is offering 10GBps packages at S$139/mth, a discount to existing 1GBps packages.
Morgan Stanley said Tuas' renewal rates remain very strong.
They said the company also faced increasing competition.
They added:
The other major change is increased competition at the budget end from other telcos. We see this strategy as painful in terms of cannibalising its own back books at much lower ARPUs. As the low-cost operator, we see TUA as well positioned to profitably sustain low ARPUs with increasing inclusions.
Tuas said regarding the outlook, it would "continue to grow EBITDA by the introduction of additional innovative products that will benefit consumers and businesses''.
The company added:
The Company expects that Simba will incur incremental capital and operating expenditure during FY27 in the range of S$15-S$30m to meet cyber security requirements imposed by Singapore regulators on all critical infrastructure owners.
Morgan Stanley has a price target of $4.35 for Tuas shares, compared with $1.79 at the time of writing.
The company is valued at $978.9 million.
