M1

M1: OCBC maintains Buy with $2.80 TP. House note that M1 will launch its nationwide 4G LTE network in Singapore on 15 Sep, where it will offer 95% coverage for indoor and outdoor areas. M1 is also pricing its 4G services at a premium to its 3G bundles. While the 4G premiums could be a minor stumbling block (but unlikely to deter early adopters), the bigger stumbling block is likely to come from limited 4G handsets that are available. Hence, believe that 4G LTE is still more of a 2013 story, as the mass market may still take some time to convert their 3G handsets to 4G. As such, have not factored in any significant contribution from LTE until 2014 in our model. Although continue to like M1 for its defensive earnings and relatively attractive dividend yield of 5.3%.