Buy @ $2.98, $2.96
M1 results out last evening… Div 5.9ct, reduced from 8.3ct… But, from 9M EPS, based on 80% payout, the projected DPS (using Q4 EPS to be same as Q3) would have been close, at aro 6ct… Perhaps mkt was expecting better EPS or 100% Payout (like FY14)? 😀
- M1 -12ct @ $2.05
- Starhub -14ct @ $2.96
- Singtel +2ct @ $3.86
- STI -2.01 @ 3039.94
Looking at Starhub 9M data, FCF is going to be lower than Div = 20ct, mainly due to the $80M for Spectrum license. The risk is high for a lower DPS for next FY eg. reduce to 4.5ct… If so, Yield is aro 6% at current prices… same as M1… The bigger risk is the impact of 4th TELCO… even before it starts to operate, defensive measures like price reduction for extra data, may already be eroding their EPS…