Singapore Stock Market News

StarHub - Unfavourable Revenue Mix

StockFanatic
Publish date: Thu, 19 Jun 2014, 01:43 PM
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We expect further pricing erosion for residential broadband as StarHub seeks to protect its existing subscriber base to fend off attractive offers from SingTel and M1. There would also be upward pressure on cost of content as SingTel seeks to broaden its portfolio of content for mioTV. While dividend yield is attractive at 4.7%, its payout ratio is stretched at an estimated 96.8% for 2014.

Maintain HOLD. Our suggested entry price is S$3.95. Target price: S$4.33.
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