“While revenue was higher than expected due to higher handset sales, this was offset by matching handset cost.” The house tips a 6.0% net profit growth in 2011 versus 2010.
Phillip Securities Research in a Jan 20 research report says: “M1 reported FY2010 operating revenue of $979.2 million (+25.3% y-o-y) and net profit of $157.1 million (+4.5% y-o-y). It announced a final dividend of $0.077 and special dividend of $0.035 per ordinary share for FY2010.
OCBC, that has a Buy rating, and tweaks fair value to $2.79 from $2.70 on M1’s lower capex guidance, says the results were “almost spot on our expectations.”
The following companies may have unusual price changes in Singapore trading today. Stock symbols are in parentheses, and share prices are from the previous close. Singapore’s Straits Times Index lost 0.2% to 3,241.96.
CapitaMall Trust (CT SP): Singapore’s biggest retail property trust, said its fourth-quarter payout to shareholders fell 1.4% to $75.4 million from a year earlier. The dividend beat its own forecast of $73.9 million. The stock was unchanged at $1.90.
Kim Eng Research in a Nov 19 research report says: “M1 has made its long-awaited foray into the world of Pay TV with the launch of 1box. While the initial service is fairly modest, we believe this is just the tip of the iceberg with a bigger splash coming by 1H11 when content cross-carriage is implemented.
DBS Vickers Securities in an Oct 19 research report says: “Revenue was up 10% q-o-q and 30% y-o-y to $246 million, as handset sales jumped 56% q-o-q, on the back of higher sales of the newly introduced iPhone4. This was largely offset by higher handset subsidy costs, and net profit of $39.5 million (+15.5% y-o-y) was in line with our estimates.
Singapore shares likely to rise, tracking gains across regional bourses after DJIA ends at highest level since May 3, helped by upbeat earnings from Citigroup; that actual earnings results fuelled buying interest, rather than Fed easing hopes, also viewed as positive, says Dow Jones.
"The quantitative easing story has had a good run, and now people will want to look at earnings, both here and in the US for more reasons to buy," says a dealer at local brokerage.
The following companies may have unusual price changes in Singapore trading. Share prices are from the previous close. Singapore’s Straits Times Index slipped 0.7% to 3,181.27. Singapore’s benchmark Straits Times Index <.FTSTI> fell 0.72% on Monday to 3,181.27 points. Here are some stocks to watch out for, according to Thomson Reuters and Bloomberg.
Palm-oil producers: Nomura Holdings Inc. raised its view on crude-palm-oil stocks to “bullish” after increasing its price forecasts for the commodity by as much as 20%, the brokerage said in a note to clients.
M1 Limited says net profit after tax increased 5.7% y-o-y to $119.6 million for the nine months ended 30 September 2010.
Operating revenue at $717.8 million rose 27.0% y-o-y due to higher service revenue and handset sales. Service revenue grew 4.9% to $546.0 million, benefiting from growth in both postpaid and prepaid mobile customers, as well as contribution from fixed services. EBITDA at $235.9 million was up 2.4%.
Interest in M1 likely due to expectations for good 3Q earnings, due after market close, also on belief Singapore’s smallest telco has most to gain from rollout of Next Generation National Broadband Network (NGNBN).
Broker says if M1′s capex-to-sales ratio for FY11 lower than 12%, free cash flow would be higher, potentially resulting in special dividends or capital management exercise. Shares flat at $2.21.
SingTel, as Southeast Asia’s biggest phone company is known, dropped 1.6%t to $3.06 at the end of Singapore’s morning session. Starhub, Singapore’s second-biggest phone company, fell 2.8%, the most since May 20, to $2.42. M1, the smallest of the three operators, slipped 1.3% to $2.23. The benchmark Straits Times Index fell 0.3%.
Singapore shares may see a weak start on Wednesday after persistent economic fears left US stocks little changed in choppy trade overnight. Singapore’s benchmark Straits Times Index <.FTSTI> fell 0.23% on Tuesday to 2,950.33 points. Here are some stocks and factors to watch:
M1 (MONE.SI) said it will launch its high-speed fibre broadband service with speeds of up to 1 gigabit per second and fixed voice service on Wednesday. It will also offer a free three-month trial of the fibre broadband service at 100Mbps to residential customers whose homes are ready for service.
M1 says it will launch its high-speed fibre broadband service with speeds of up to 1Gbps and fixed voice service starting next month.
Four new broadband plans for residential customers with downlink speeds of 1Gbps, 100Mbps, 50Mbps and 25Mbps will be offered on the new fibre network. They will also provide maximum uplink speeds of up to 500Mbps to ensure the best streaming and gaming experience for customers.
CIMB lifts M1 (B2F.SG) target price to $2.60 from $2.20 after increasing FY11-12 core earnings estimates by 9%-17% to account for potential impact of Singapore’s upcoming next-generation national broadband networ, keeping its Outperform call, says Dow Jones.
UBS downgrades M1 (B2F.SG) to Neutral from Buy, citing weak free cash flow, reduced likelihood of special dividend, limited broadband revenue upside when Singapore’s high-speed national broadband network rolls out in coming months, says Dow Jones.
UBS says free cash flow down 66% on year in 1H10 at $30 million due to increased working capital needs arising from sale of smartphones: “We expect M1’s cash flows to remain weak in 2H10 because the iPhone 4 will be launched on 30 July 2010 and capex is seasonally higher in 2H”.
Research house notes while national broadband network will open new revenue stream for M1: “The question is how well M1 will be able to execute” as gaining wireline subscriber market share from SingTel (Z74.SG), StarHub (CC3.SG) likely to be difficult. Sets target price at $2.17. Shares off 0.5% at $2.22.
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AmFraser in a July 16 research report say: “Total mobile subscribers grew a healthy 11% yoy to 1.85 million. However, mobile service revenues grew a modest 2% yoy to $288.1 million in 1HFY10 as ARPUs declined in 2Q.
