Starhub

Starhub: Maybank upgrading to Buy with a street high TP of $5.13. House think margin guidance is too conservative and StarHub can do better, especially if iPhone 5S disappoints. Also, now that BPL cross-carriage is sorted out, think Pay TV subscribers losses will reverse as early as 3Q13. Also like the new CEO’s enterprise-oriented strategy to drive future growth and margins. Grp now wants fixed network services to be the second largest contributor (now 15%) after mobile (50% of revenue), given that enterprise margins are higher than consumer.