Singtel

Singtel: Company sold its entire 30% stake in Pakistan's Warid Telecom to the Abu Dhabi Group for $185m. Loss on disposal will be approximately $230m, including FX translation losses and transaction costs. Bharti (contributes c.11% NAV to Singtel) has benefitted from the recent improvement in the competitive environment in India with two rounds of price increases since Nov 2012, with the exit of several smaller players. Indonesia's Telkomsel (contributes c.16% NAV to Singtel) is targeting stronger growth in 2013 as compared to the previous year, due to the lower mobile penetration relative to the region. Singapore (c.29% NAV to Singtel) embarked on its tiered data pricing, with recent positive results from competitor M1 saw revenue growth improve on the take-up of the tiered data plans. MS rates OVERWEIGHT on Singtel, with a TP of $3.80 based on FY13 15x P/E and a dividend yield of 4.9%.