Wednesday, February 16, 2011


Telco: 4QCY10 round up. Credit Suisse says mobile continues to be the sector’s main growth driver. Notes SingTel performed the best, with 53% of the quarter’s 78k postpaid net additions.
SingTel now enjoys 46% of postpaid market share, with StarHub at 28% and M1 at 27%.
The gaps are more distinct in mobile revenue share terms, with SingTel leading with 51% versus StarHub’s 33% and M1’s 16%...

But revises industry earnings downwards by 1-3%, as the NBN remains a 2012 story, in light of the delays in the roll-out of OpenNet’s all-fibre network and startup issues faced by the players...

SingTel (maintain Outperform with $3.73 TP), with possible further capital management as a key catalyst.
MI (Neutral with $2.66 TP), due to limited near-term catalysts.
StarHub (Underperform with $2.35 TP), on view that the effectiveness of its hubbing strategy has been diminished by the more intense competitive landscape.

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