SingTel

SingTel: Maybank-KE maintain its Buy call on the counter with a TP $4.35, following its annual Investor Day last week. By the house estimates, 82% of SingTel’s SOTP valuation will be in growth mode this year vs just 34% a year before. This will be driven by: 1) Singapore whose growth will be driven by the adoption of 4G and the monetisation of Pay TV, and 2) most of its associates are also expected to perform well on the back of rising data usage amid benign conditions. With regional currencies expected to be more stable, growth at associates, especially Bharti, should strengthen this year. Elsewhere, Optus plans to aggressively regain market share, while the Digital Life initiatives, launched in 2012, are already enabling SingTel companies to better compete. Lastly, the group guided that the 1) the $2b allocated for non-telco investments is in line with global benchmarks, 2) investee companies are already proving their worth in giving SingTel group companies an edge in the market place, and 3) financial discipline will be maintained and dividends will stay intact.