M1

M1: Announced 3Q11 results which was in-line, but at the lower end of expectations. Rev at $244.9m, -0.3% yoy and -0.2% qoq, while net profit at $41.1m, -4.3% yoy and -4% qoq.

Seasonal slowdown and a gap between subscribers awaiting the launch of the new iPhone 4S led to the weaker performance, while operation of its own fibre broadband, Operating Co. resulted in an uptick in employee and other expenses. The launch and subsidies related to the iPhone 4S coupled with a seasonal uptick in marketing expenses are likely to generate a seasonally weak margin in 4Q11, although mgt guided for overall full-yr profit growth to remain positive. However, mgt mentioned that given current global financial market conditions, paying more than its min 80% div payout would be challenging. Ratings are as follow:

HSBC maintains U/w with $2.43 TP,
Deutsche maintains Sell with $2.06 TP,
DBSV maintains Hold with $2.60 TP and
Goldman maintains Neutral with $2.40 TP
UBS maintain Neutral, TP $2.48, and
CS maintain Neutral, TP $2.80