Singtel: CS maintains O/p, TP 3.56 from 3.70, Negative news on regulatory and currencies priced in, associates' growth is not. Expect slower 3G progress, margin pressure and an increase in regulatory risks in India, revised down FY3/12-14E EPS forecasts for Bharti by 20% and TP by 21% to Rs375/share.
However, remains positive on ST’s regional associates as the competition in Indo and India is stabilising, while Bharti, Telkomsel, AIS, and Globe are all well-positioned to benefit
from the smartphone phenomenon. Believe Indian regulatory risks and adverse currency movements are priced in while associates’ growth opportunities are not. Catalysts include: (1) rerating of Indo telcos, (2) potential change in data tariff in Singapore and (3) potential reversal of currency depreciation.
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