Telcos: CIMB recently hosted Telco’s roadshow for investors in KL/SG/HK, covering more then 50 fund managers. House note that interest was strong with investors looking for refuge in a stable, high-yielding sector. Few had major issues with house view that lower-margin data rev is starting to substitute the higher-margin voice and SMS rev of telcos in Indo and, to a lesser extent, Msia, due to a change in consumer behaviour.
Overall, house like the Thai, SG and Msian telcos. Indonesian telcos are less favoured given their low div payouts and cannibalisation of voice/SMS rev. Top picks are Telekom Malaysia, AIS and SingTel and house recommend an O/w on sector.
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