SingTel: our house team previews Singtel results, which will be announced tomorrow morning.
It as likely for 3QFY15 net profit to fall below $850m (vs $872m in 3QFY14), mainly due to currency weakness.
In 4Q14, IDR fell 8.5% against SGD and AUD fell 5% against SGD, impacting profit contribution from Telkomsel and Optus respectively. The two subsidiaries account for 30% of SOTP valuation.
Singtel is now within 5% upside of our TP of $4.31, rated Buy subject to review post results.
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