StarHub

StarHub: After talking with co executives, CIMB says Starhub is more likely to raise dividends than undertake a one-off capital mgt exercise. Says StarHub continued to downplay capital-mgt chances as it doesn't sustain the share price. Starhub also cited uncertain economic conditions and regulatory developments (such as the common feature set top box), as reasons to be cautious.
CIMB now assumes StarHub will raise its quarterly DPS to $0.055 from $0.05 starting 3Q12 and to $0.06 from 1Q13.
Previously, CIMB had assumed a FY12 capital reduction of $0.25. The house says, it strongly feels that StarHub will soon have to take steps to optimize its increasingly under-leveraged balance sheet. Keeps the stock its top Singapore and regional telco pick, rating it Outperform with TP $3.31.
The stock is down 1.3% at $3.15.