Singapore Stock Market News

M1 Limited - Roamers hanging up

StockFanatic
Publish date: Thu, 17 Oct 2013, 10:38 AM
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At 94% of our forecast, M1's annualised 9M13 core net profit was in line as we expect 4Q13 to be stronger qoq on lower subsidies. But M1 is a little ahead of consensus estimates at 98%. Data revenue was the key driver, but M1 was dragged by weaker roaming and IDD revenues.

We revise our FY14 DPS to 19 Scts to include a special DPS of 4 Scts and a final DPS of 8 Scts on the back of a net debt/EBITDA of only 0.5x. As such, we tweak our EPS estimates down. M1 remains an Outperform with a higher DCF-based target price after rolling a year forward. Likely price catalysts are a special dividend and earnings surprise.
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