UOBKayhian on 4 June 2015
FY16F PE (x): 25.3
FY17F PE (x): 27.3
Consumer Singapore: Prepared to defend its turf. Management highlighted the difficult
operating environment confronting the potential fourth mobile operator. The new entrant
would be regulated based on quality of service, which is audited by iDA on a regular
basis for both in-building and outdoor coverage. iDA is unlikely to institute a regulatory
framework for national roaming given that Singapore is a small island nation.
We like SingTel due to growth of its regional mobile associates. We also see the stock
as a hedge against regulatory uncertainties in Singapore as overseas businesses
accounted for 75.1% of group PBT in FY15.
Our target price for SingTel is S$4.80 based on DCF (required rate of return: 5.45%,
terminal growth: 1.0%)
No comments:
Post a Comment