Singapore Stock Market News

Starhub - Mixed signals

StockFanatic
Publish date: Wed, 07 Aug 2013, 10:50 AM
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Starhub's annualised 1H13 core net profit was a little above CIMB and consensus by 2% and 5%, respectively, on surprises in NGNBN adoption grants and interest expense. Results were mixed with growing mobile and fixed services offset by pay TV and broadband.

As expected, it declared a DPS of 10 Scts and maintained its guidance. We raise our FY13-15 EPS estimates by 3% and our DCF-based target price by 2 Scts to reflect a higher NGNBN adoption grant, which ends in FY15. Starhub remains a Neutral with a DCF-based target price (WACC 7.8%) as it lacks re-rating catalysts. Switch to M1.
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