Starhub

Starhub: FY12 profits of $359m was 6% above street estimates, on better than expected equipment sales and EBITDA margins. Management expects revenue growth to remain in the single digit range, and EBITDA margins to remain near current levels of 31%. 4Q12 EBITDA margins remained firm at 31.2% of service revenues. This was driven by lower than expected marketing and promotion costs and traffic expenses. The company recommended an interim dividend of 5¢/sh, taking its FY dividend to 20¢/sh; Indicative 5% dividend yield. The company maintained its annual cash dividend forecast for FY13. DB maintains HOLD with TP of $3.41; CIMB downgrades to NEUTRAL with TP of $3.95; CLSA maintains UNDERPERFORM with TP of $3.96. Company currently trading at 19.2x P/E.