SingTel

SingTel: FX headwinds have been an ongoing story at SingTel, blowing back valuation for 70% of the firm. Still, Deutsche maintains its Buy call, albeit with a lower TP of $4.15 (from $4.30), to account for the FX weakness, AIS TP cut , and a more conservative view of Spore valuation. The house believes that with associate value near post-2006 lows, and positive structural stories developing, an up-cycle in associates may come through to prop SingTel. Meanwhile, SingTel has kept underlying profit flat y/y, with headline net profit up 5% to $870m, suggesting earnings resilience.