SingTel

SingTel: By yr end, SingTel will be the first in Singapore to launch money transfer services that can be done directly from their customers' mobile phone. The remittance business offers high margins, and is generally low risk, with global market expected to grow to grow to US$1 tr in five years. Foreign workers who want to transfer money home will be among customers that SingTel wants to target. Foreign workers remit an average of $300 a month. The Philippines will be the first of four countries that SingTel will serve for its new remittance services, with Thailand, India and Indonesia to follow. From Monday, SingTel will open a new over-the-counter remittance store at Lucky Plaza. But by end of the year, customers need not come down to the store, thanks to the mobile-to-mobile remittance service. In the Philippines, recipients can claim the remitted funds through 6,000 designated locations or 9,000 ATMs across the Philippines. We think that this is a smart move strategically, as it allows SingTel to hold on to, if not grab a larger share of the pre-paid mobile segment, which is popular with foreign workers. SingTel trades at 4.7% yield. The Street has mixed views with 6 Buys, 6 Sells and 13 Holds, with avg consensus TP at $3.32.