Changes From Within…

• New StarHub CEO Peter Kaliaropoulos hosted an analyst briefing to outline a broad strategy that will be proposed to the Board vestors.io ). 
• Maintain BUY with a DCF-based (WACC 5.7%, LTG -1%) Target Price of SGD1.96.

…to Prepare for External Threats

The CEO highlighted that MVNO models on average do not last beyond a few years as telco incumbents make the adjustments to their business structures and marketing plans. Meanwhile incoming MNO entrant TPG Telecom will put up a fight but there are few markets where four operators each with significant market shares exist. 

Also, unlike the past when the MNO incumbents did not react quickly to disruptive promotions, there is not likely to be a long grace period for TPG. Whether via MVNOs or directly, the incumbents will react to bring parity. 

Source: Maybank Kim Eng Research - 23 Aug 2018