Singapore Stock Market News

SingTel - Bharti's 2QFY13 letdown

StockFanatic
Publish date: Thu, 08 Nov 2012, 02:32 PM
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2QFY13 core net profit for Bharti, SingTel's associate, came in 37% below consensus estimates that form the basis of our forecast. This was due to an unexpected surge in depreciation and higher interest expense in Africa. Its operational performance was well within expectations.

We maintain our SOP-based target price and Underperform call on SingTel. Likely de-rating catalysts include additional negative regulatory developments in India and weaker regional currencies. SingTel will release its 2QFY13 results on 14 Nov. We prefer StarHub for its attractive dividends.
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