SingTel

SingTel: UOB Kay Hian maintains BUY rating with higher TP of $4.32 (from $4.20), to account for stronger growth in Indonesia and India. For Telkomsel (Indo), competition has eased since the industry consolidated to four players with XL Axiata completing the acquisition of Axis in Mar 14. Subsequently, Telkomsel has raised its pricing for voice and SMS. The accelerated pace of increase in data traffic since 2H13, likely triggered by the enhanced quality of its network and availability of low-cost smartphones priced below US$100. Meanwhile, Bharti Airtel (India) is benefitting from operating leverage and reducing financial leverage. Price competition has eased with the top three players, and prices of call vouchers for pre-paid subscribers have also increased. ARPU has gradually improved since hitting a bottom in 2QFY13 and voice realisation per minute is on an upward trend.