SingTel

SingTel: -1.5% to $3.34 after posting a 3.2% rise in 1QFY13 net profit to $945.3m with little fresh news emerging from its post-earnings press conference. CEO Chua Sock Koong’s claim that there are not many attractive emerging-market assets for acquisition, which may have also dampened hopes for potential catalysts. CIMB highlighted the main disappointment sprang from Bharti, which saw pretax profit contributions plunged 32% qoq and 38% yoy, aggravated by rupee weakness, even as other associates performed ahead of expectations. House notes that SGD strength also dampened other overseas contributions. S’pore revenue fell 2.5% qoq on weaker IT-related contributions and weak equipment sales, which overwhelmed growth in data/Internet and seasonally stronger IDD revenue. The 3% qoq rise in S’pore subscriber acquisition costs was a surprise given the popularity of lower-priced Android devices vs iPhones. It keeps a Neutral call with $3.36 target, noting SingTel is maintaining its FY13 guidance.