OVERVIEW:
The counter is a leading communication group with significant presence in Singapore and Australia (Optus). It own stakes in regional mobile associates, namely Bharti Airtel (India, South Asia and Africa), Telkomsel (Indonesia), Advanced Info Service (Thailand) and Globe Telecom (the Philippines). The services range include fixed line, mobile, data, internet, TV, infocomm technology (ICT) and digital solutions.
HIGHLIGHTS:
[1] The latest result saw its earning growing steadily. Shrinking domestic earning offset by overseas contribution.
[2] The group is in net debt position, $7.9b. Total debt/equity < 40%, which is lowest among local telcos.
[3] Three parties submitted application to be 4th telco by deadline, 1 Sep. IDA is expected to make decision in end Sep ~ early October.
INVESTMENT THEMES:
[1] Its annual dividend is $0.170. Shall price fall below 4, dividend yield is attractive at 4.2%
[2] Mobile business in Singapore contributes ~7% of total revenue of the group. Thus it should be the least susceptible to impact from 4th telco.
[3] The group continues to raise its shareholding in regional telco group.
PRICE TREND:
The defensive counter has cyclic behavior in its price movement over past three years. A simple average price is $ 3.9. Current price is trading in the lower zone. Accumulate chance is presenting.
*** Note: Same counter has been mentioned in Sep[2] 2015 ***
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