My friend invested in Starhub bonds. He asked if if the bonds are safe. (He had invested in Hyflux preference shares and lost nearly all of his invested sum).

I look at the financials in Yahoo Finance. 
https://finance.yahoo.com/quote/CC3.SI/financials?p=CC3.SI

During the past five years, the share price dropped from a high of $3.92 to $1.29 now. It is a drop of 67%.

At the current price of $1.29, the price earning ratio is 12.5 times (implying an earnings yield of 8%. The current dividend yield is 6.98%.

I looked at the financial figures over the past 4 years. (see the table below).

The net income available to shareholders dropped from $341 million in 2016 to $186 million in 2019. 

The interest payment on the bonds is $38 million, as it is covered by 4.9 times by the net profit. I conclude that the bonds are safe. The profit has to drop sharply before the bonds are at risk.

Is the share price attractive for an investor? I think so. I might buy the shares and get a dividend yield of 6.9%. I expect that the financial figures for 2020 should be better, as they have received a wage subsidy from the government and their revenue should be steady.

Tan Kin Lian