Cyber Security JV. Maintain BUY

• StarHub is forming a new JV company (Ensign) with an unlisted wholly owned subsidiary of Temasek (Leone) to grow its cyber security business locally and regionally. We await the finalization of the deal by Oct 2018 and revised contributions from the cyber security business to assess final impact to our forecasts.
• StarHub remains our only BUY in the Singapore telco space with a DCF based (WACC 5.7%, LTG -1%) Target Price of SGD1.96.
• Worse than expected wireless and enterprise competition are the key risks to our outlook.

Source: Maybank Kim Eng Research - 05 Sep 2018