SingTel

SingTel: OCBC maintains Buy with $3.88 TP. House note that despite being widely touted as a front-runner, was not among the two winners of the 15-year telecommunications licences in Myanmar. But not winning it may not be a bad thing, given the massive scale of the infrastructure roll-out, and the still uncertain regulatory environment in the nascent mobile market. House believe that there are still opportunities for SingTel to get involved at a later stage when the industry is more settled and the regulatory environment is more established. Separately, see the recent volatility in the regional currencies as the biggest risk factor, as SingTel is especially exposed to AUD/SGD movements because of Optus. However, do note that some value is starting to emerge around current levels, as SingTel has fallen back to below SOTP fair value of $3.83. Hence house maintain HOLD rating and would be buyers closer to $3.50