Starhub: Disappointing results due to lower margins. 3Q rev at $572.2m +3.6% yoy -0.6% qoq with net profit at $75.8m -7.6% yoy -2.8% qoq. EBITDA was $167.2m -3.0% yoy +3.5% qoq. Margins were impacted by higher handset subsidies which resulted in cost of equipment sold rising 37% yoy to $84.2m.
Staff costs also rose 15.9% yoy as 4 new retail outlets and service centres turn fully operational and prepaid revenues fell 8% due to fall in foreign worker numbers.
Declared 5c dividend as expected.
Co has warned that 4Q11 may not show much potential for improvements due to rising costs linked to the iPhone 4S launch. Co appears to have limited upside but div yield of 7% shld support its share price.
JPM maintains Neutral with TP$2.70
Citi maintains Neutral with TP$2.69
Deutsche maintains Buy with TP$3.00
ML maintains Underperform with TP$2.50
MS maintains Equal-weight with TP$2.70
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