SingTel

SingTel: During Jul-Sep13, the IDR and INR depreciated further by 14% and 5% q/q, respectively, while the SGD appreciated by 1% q/q against USD. These, together with sharp depreciation of Asian currencies relative to the SGD during Apr-Jun13, mean average exchange rates would put pressure on SingTel's upcoming headline result. House note though that these depreciations are not new news. Importantly, CS also expect operational improvements to continue in Singapore (mobile data monetisation, lower subsidies), Australia (cost efficiencies) and across its major associates (e.g. RPM increases in India). CS maintain OUTPERFORM on SingTel with TP $4.10 based on SOTP DCF, supported by 5% FY3/14E dividend yield. Notes that there could be downside risk to its IDR and INR assumptions, but 5% change in its IDR and INR assumptions relative to SGD for FY3/15E would only affect SingTel's net profit forecasts by 1.0% and 0.7%, respectively.