M1

M1: 3Q13 net profit rose 19% y/y to $39.5m following good results in the past 2 quarters. Results could have been better if not for a $1.5m IDA fine from a network failure in Jan 2013. Adjusted for the fine, 3Q13 net profit would have been 20% y/y, and 9M13 net profit would have accounted for 72% of MBKE’s full year forecast. Data monetisation is still intact, with data contributing 42.3% of service revenue, as well as the number of subscribers who have switched over to tiered data plans (32% of postpaid base, up 5ppt q/q) with 5.1 of postpaid base busting their data caps. iPhone 5 impact should be smaller than before as demand for the 5s is not as strong as the 5, whilst supply is being soaked up by China and Japan. MBKE maintains Buy with TP: $3.98 on 2 catalysts: 1)The telco firm could pay a 7cts special dividend on top of regular full year dividend of 14.8cts. If so, its yield of 6.3% would be as attractive as SREITs. 2) If BPL cross-carriage goes through next year, it will be a huge boost to its Pay TV business. Calls from other brokers as follows: CIMB: O/PF, TP:$4.10 OCBC: Hold, TP:$3.17 Daiwa: Hold, TP: $3.11