Author: kktan
M1 – Lim & Tan
- M1 Ltd reported 2Q13 net income of S$39.2 million, which was in line with market expectations. Operating revenue of S$244.5 million for 2Q13 rose 5.3% y-o-y, mainly driven by higher service revenue, as its cellular customer base (+307K 4G new customers) and market share edged higher.
- Cost of sales increase 1.5% y-o-y in 2Q13, as higher traffic expenses was partially offset by lower handset costs. Operating expense also grew 4.8% in 2Q13, due to higher staff costs, as well as higher advertising and promotion expenses.
- The firm was allocated 40 MHz of paired spectrum rights (in the 1800 MHz and 2.5 GHz bands) at a reserve price of S$104 million, bringing the total capital commitment as at 30 Jun 2013 to S$194.8 million.
- The company’s balance sheet remains sound, with net gearing ratio at 52.7%, compared to 74.8% as of 4Q12.
- The company declared an interim dividend of 6.8 cents per share, up from 6.6 cents per share in the same period last year.
- Consensus FY14E dividend yield stand at 5.0%.
- Going forward, management expects a sustained shift towards 4G smartphones, higher data usage per smartphone user, as well as better traction in gaining customers in its fiber services offerings. In addition, they guided for “moderate growth” in net profit after tax for FY2013.
- We believe that M1 would continue to exhibit resilience in its operating performance over the long term, and would continue to remain as a safer alternative compared to the REIT sector.
M1 – Lim & Tan
- M1 Ltd reported 2Q13 net income of S$39.2 million, which was in line with market expectations. Operating revenue of S$244.5 million for 2Q13 rose 5.3% y-o-y, mainly driven by higher service revenue, as its cellular customer base (+307K 4G new customers) and market share edged higher.
- Cost of sales increase 1.5% y-o-y in 2Q13, as higher traffic expenses was partially offset by lower handset costs. Operating expense also grew 4.8% in 2Q13, due to higher staff costs, as well as higher advertising and promotion expenses.
- The firm was allocated 40 MHz of paired spectrum rights (in the 1800 MHz and 2.5 GHz bands) at a reserve price of S$104 million, bringing the total capital commitment as at 30 Jun 2013 to S$194.8 million.
- The company’s balance sheet remains sound, with net gearing ratio at 52.7%, compared to 74.8% as of 4Q12.
- The company declared an interim dividend of 6.8 cents per share, up from 6.6 cents per share in the same period last year.
- Consensus FY14E dividend yield stand at 5.0%.
- Going forward, management expects a sustained shift towards 4G smartphones, higher data usage per smartphone user, as well as better traction in gaining customers in its fiber services offerings. In addition, they guided for “moderate growth” in net profit after tax for FY2013.
- We believe that M1 would continue to exhibit resilience in its operating performance over the long term, and would continue to remain as a safer alternative compared to the REIT sector.
STEng – OCBC
REDUCING PEG FROM 22X TO 20X
- Sell-down along with broader market
- Risk-off approach for market
- Cut FV to S$3.97
Recent sell-down
As part of the recent general sell-down in the market, STE’s share price has fallen 12.1% since the peak of S$4.56 on 24 April 2013. But we note recent contract wins that attest to the group’s market leading positions. Just yesterday, ST Aerospace announced that that it has signed a longterm agreement with UTC Aerospace Systems to provide maintenance, repair and overhaul (MRO) services on the Boeing 787 Dreamliner nacelle systems for the Rolls-Royce Trent 1000 and General Electric GEnx engines. This follows a string of ST Aerospace announcements on 18 Jun, including an eight-year component MBHTM agreement with Spring Airlines Japan.
Solid 1Q13 despite no airshow
To recap, STE reported 1Q13 results that were in line with ours and consensus expectations. Revenue grew 0.2% YoY to S$1.54b, and PATMI fell 0.3% YoY to S$134m. PBT margin for the group stayed flat YoY at 10.5%. Highlights include: 1) lack of the biennial Singapore Airshow in 1Q13, which contributed to a S$6.1m drop in share of results of associates and jointly controlled entities, 2) growth in administrative expenses by S$7.9m (7% YoY) due to increased headcount from new Aerospace subsidiaries. STE’s order book reached a new high of S$13.0b as of end-Mar 2013, of which S$3.6b is expected to be delivered in the remainder of 2013.
Better outlook for 2H13
STE continues to anticipate achieving higher revenue and PBT in FY13 versus FY12. For 1H13, STE expects higher revenue and comparable PBT YoY. These suggest that 2H13 is likely to be strong for the group.
Maintain HOLD
Nevertheless, as the market seems to be in a more “risk-off” mode, we lower our FY13F EPS peg to 20.0x (versus 22x previously), which results in our fair value easing to S$3.97 from S$4.36. We maintain a HOLD rating on STE, supported by an estimated FY13 dividend yield of 4.4%.
June 2013
STI = 3150.44 (-160.93 for the month)
|
Stock |
Period |
EPS cts |
DPS cts |
Mkt |
Yield |
PE |
Div Breakdown |
|
HL Fin |
FY12 (Dec) |
17.60 |
12.00 |
$2.550 |
4.706% |
14.49 |
Interim 4ct ; Final 8ct |
|
SingPost |
FY13 (Mar) |
6.435 |
6.25 |
$1.300 |
4.808% |
20.20 |
Q1, Q2, Q3 1.25ct ; Q4 2.5ct |
|
SPH |
FY12 (Aug) |
23 |
24.0 |
$4.170 |
5.755% |
18.13 |
Interim 7ct ; Final 9ct + Special 8ct |
Aviation Services
|
Stock |
Period |
EPS cts |
DPS cts |
Mkt |
Yield |
PE |
Div Breakdown |
|
SATS |
FY13 (Mar) |
16.60 |
15.0 |
$3.290 |
4.559% |
19.82 |
Interim 5ct ; Final 6ct + Special 4ct |
|
SIA Engg |
FY13 (Mar) |
24.51 |
22.0 |
$5.040 |
4.365% |
20.56 |
Interim 7ct ; Final 15ct |
|
ST Engg |
FY12 (Dec) |
18.76 |
16.8 |
$4.190 |
4.010% |
22.33 |
Interim 3ct ; Final 4ct + Special 9.8ct |
Note : SATS Special Div is Observed to be Non-Recurring
Transport
|
Stock |
Period |
EPS cts |
DPS cts |
Mkt |
Yield |
PE |
Div Breakdown |
|
SBSTransit |
FY12 (Dec) |
6.01 |
3.00 |
$1.400 |
2.143% |
23.29 |
Interim 1.35ct ; Final 1.65ct |
|
ComfortDelGro |
FY12 (Dec) |
11.89 |
6.40 |
$1.835 |
3.488% |
15.43 |
Interim 2.9ct ; Final 3.5ct |
|
SMRT |
FY13 (Mar) |
5.5 |
2.50 |
$1.435 |
1.742% |
26.09 |
Interim 1.5ct ; Final 1.0ct |
TELCO
|
Stock |
Period |
EPS cts |
DPS cts |
Mkt |
Yield |
PE |
Div Breakdown |
|
SingTel |
FY13 (Mar) |
22.02 |
16.8 |
$3.770 |
4.456% |
17.12 |
Interim 6.8ct ; Final 10ct |
|
M1 |
FY12 (Dec) |
16.1 |
14.6 |
$3.010 |
4.850% |
18.70 |
Interim 6.6ct ; Final 6.3ct + Special 1.7ct |
|
StarHub |
FY12 (Dec) |
20.93 |
20 |
$4.180 |
4.785% |
19.97 |
Q1 5ct ; Q2 5ct ; Q3 5ct ; Q4 5ct |
Funds / Infrastructure
|
Stock |
Period |
DPS cts |
Mkt |
Yield |
NAV |
Div Breakdown |
|
SPAus |
2H – Mar13 |
A4.1 (Gross) |
$1.395 |
6.805% |
A$0.91 |
1H13 A4.1ct ; 2H13 A4.1ct |
|
MIIF |
FY13 – Guidance |
1.90 |
$0.163 |
11.656% |
? |
1H12 2.75ct ; 2H12 2.75ct + 3ct (Special) |
* SPAus DPU in A$. Yield is Calculated Using Latest Exchange Rate (1.1577) fm Yahoo
NOTES :
- Mkt Price is as on 28-Jun-13
- MIIF : FY13 Guidance 1H13 (Jun) –0.7ct ; 2H13 (Dec) – 1.2ct (Final) ; APTT IPO Entitlement / 1000 MIIF Shares (Estimate) = 457 APTT Shares or $443.29
- SPAus : 2H13 (Mar13) – A4.1ct = A1.367ct (Franked) + A2.649ct (Interest) + A0.084ct (Capital Returns) ; 1H13 (Sep12) – A4.1ct = A1.367ct (Franked) + A2.467ct (Interest) + A0.266ct (Capital Returns)
- SPAus : FY14 Guidance = A8.36ct
- SATSvcs : 2H13 (Mar13) – Final 6ct + Special 4ct ; 1H13 (Sep12) – Interim 5ct
- SingTel : 2H13 (Mar) – Final 10ct ; 1H13 (Sep12) – Interim 6.8ct ; Div Policy – 60% to 75% of Underlying Net Profit
- SIAEC : Q413 (Mar13) – Final 15ct ; Q213 (Sep12) – Interim 7ct
- StarHub : Q113 (Mar) – 5ct
- SingPost : Q413 (Mar13) – 2.5ct ; Q313 (Dec12) – 1.25ct ; Q213 (Sep12) – 1.25ct ; Q113 (Jun12) – 1.25ct
- SMRT : Q413 (Mar13) – Final 1.0ct ; Q213 (Sep12) – Interim 1.5ct
- SPH : 1H13 (Feb) – Interim = 7ct
- HLFin : 1H12 (Jun) – 4ct ; 2H12 (Dec) – 8ct (Final)
- ST Engg : 1H12 (Jun) – 3ct ; 2H12 (Dec) – 4ct (Final) + 9.8ct (Special)
- ComfortDelgro : Q412 (Dec) – 3.5ct ; Q212 (Jun) – 2.9ct
- StarHub : FY13 Div Guidance – 5ct/Q
- SBSTransit : Q212 (Jun) – 1.35ct ; Q412 (Dec) – 1.65ct
- M1 : 2H12 (Dec) – Final 6.3ct + Special 1.7ct ; 1H12 (Jun) – Interim 6.6ct
June 2013
STI = 3150.44 (-160.93 for the month)
|
Stock |
Period |
EPS cts |
DPS cts |
Mkt |
Yield |
PE |
Div Breakdown |
|
HL Fin |
FY12 (Dec) |
17.60 |
12.00 |
$2.550 |
4.706% |
14.49 |
Interim 4ct ; Final 8ct |
|
SingPost |
FY13 (Mar) |
6.435 |
6.25 |
$1.300 |
4.808% |
20.20 |
Q1, Q2, Q3 1.25ct ; Q4 2.5ct |
|
SPH |
FY12 (Aug) |
23 |
24.0 |
$4.170 |
5.755% |
18.13 |
Interim 7ct ; Final 9ct + Special 8ct |
Aviation Services
|
Stock |
Period |
EPS cts |
DPS cts |
Mkt |
Yield |
PE |
Div Breakdown |
|
SATS |
FY13 (Mar) |
16.60 |
15.0 |
$3.290 |
4.559% |
19.82 |
Interim 5ct ; Final 6ct + Special 4ct |
|
SIA Engg |
FY13 (Mar) |
24.51 |
22.0 |
$5.040 |
4.365% |
20.56 |
Interim 7ct ; Final 15ct |
|
ST Engg |
FY12 (Dec) |
18.76 |
16.8 |
$4.190 |
4.010% |
22.33 |
Interim 3ct ; Final 4ct + Special 9.8ct |
Note : SATS Special Div is Observed to be Non-Recurring
Transport
|
Stock |
Period |
EPS cts |
DPS cts |
Mkt |
Yield |
PE |
Div Breakdown |
|
SBSTransit |
FY12 (Dec) |
6.01 |
3.00 |
$1.400 |
2.143% |
23.29 |
Interim 1.35ct ; Final 1.65ct |
|
ComfortDelGro |
FY12 (Dec) |
11.89 |
6.40 |
$1.835 |
3.488% |
15.43 |
Interim 2.9ct ; Final 3.5ct |
|
SMRT |
FY13 (Mar) |
5.5 |
2.50 |
$1.435 |
1.742% |
26.09 |
Interim 1.5ct ; Final 1.0ct |
TELCO
|
Stock |
Period |
EPS cts |
DPS cts |
Mkt |
Yield |
PE |
Div Breakdown |
|
SingTel |
FY13 (Mar) |
22.02 |
16.8 |
$3.770 |
4.456% |
17.12 |
Interim 6.8ct ; Final 10ct |
|
M1 |
FY12 (Dec) |
16.1 |
14.6 |
$3.010 |
4.850% |
18.70 |
Interim 6.6ct ; Final 6.3ct + Special 1.7ct |
|
StarHub |
FY12 (Dec) |
20.93 |
20 |
$4.180 |
4.785% |
19.97 |
Q1 5ct ; Q2 5ct ; Q3 5ct ; Q4 5ct |
Funds / Infrastructure
|
Stock |
Period |
DPS cts |
Mkt |
Yield |
NAV |
Div Breakdown |
|
SPAus |
2H – Mar13 |
A4.1 (Gross) |
$1.395 |
6.805% |
A$0.91 |
1H13 A4.1ct ; 2H13 A4.1ct |
|
MIIF |
FY13 – Guidance |
1.90 |
$0.163 |
11.656% |
? |
1H12 2.75ct ; 2H12 2.75ct + 3ct (Special) |
* SPAus DPU in A$. Yield is Calculated Using Latest Exchange Rate (1.1577) fm Yahoo
NOTES :
- Mkt Price is as on 28-Jun-13
- MIIF : FY13 Guidance 1H13 (Jun) –0.7ct ; 2H13 (Dec) – 1.2ct (Final) ; APTT IPO Entitlement / 1000 MIIF Shares (Estimate) = 457 APTT Shares or $443.29
- SPAus : 2H13 (Mar13) – A4.1ct = A1.367ct (Franked) + A2.649ct (Interest) + A0.084ct (Capital Returns) ; 1H13 (Sep12) – A4.1ct = A1.367ct (Franked) + A2.467ct (Interest) + A0.266ct (Capital Returns)
- SPAus : FY14 Guidance = A8.36ct
- SATSvcs : 2H13 (Mar13) – Final 6ct + Special 4ct ; 1H13 (Sep12) – Interim 5ct
- SingTel : 2H13 (Mar) – Final 10ct ; 1H13 (Sep12) – Interim 6.8ct ; Div Policy – 60% to 75% of Underlying Net Profit
- SIAEC : Q413 (Mar13) – Final 15ct ; Q213 (Sep12) – Interim 7ct
- StarHub : Q113 (Mar) – 5ct
- SingPost : Q413 (Mar13) – 2.5ct ; Q313 (Dec12) – 1.25ct ; Q213 (Sep12) – 1.25ct ; Q113 (Jun12) – 1.25ct
- SMRT : Q413 (Mar13) – Final 1.0ct ; Q213 (Sep12) – Interim 1.5ct
- SPH : 1H13 (Feb) – Interim = 7ct
- HLFin : 1H12 (Jun) – 4ct ; 2H12 (Dec) – 8ct (Final)
- ST Engg : 1H12 (Jun) – 3ct ; 2H12 (Dec) – 4ct (Final) + 9.8ct (Special)
- ComfortDelgro : Q412 (Dec) – 3.5ct ; Q212 (Jun) – 2.9ct
- StarHub : FY13 Div Guidance – 5ct/Q
- SBSTransit : Q212 (Jun) – 1.35ct ; Q412 (Dec) – 1.65ct
- M1 : 2H12 (Dec) – Final 6.3ct + Special 1.7ct ; 1H12 (Jun) – Interim 6.6ct