Stock Name: SingTel
Company Name: SINGTEL
Research House: DBS Vickers
DBS Vickers Securities in a May 9 research report says: "We trimmed FY2012F/2013F group earnings by 4%/6% mainly due to Bharti. Bharti may grow slower than expected, eroding SingTel's appeal as a cheap proxy to Bharti. Slow adoption of Android phones in Singapore is not helping SingTel either.
"We are projecting a 70% payout ratio for FY2011F/2012F, towards the top end of SingTel's guidance of 55%-70%. Given non-compelling growth prospects, SingTel needs to (i) increase its earnings payout ratio to 80% to formulate an attractive (6.5%) dividend yield, or (ii) perform capital management proactively on top of its 70% payout ratio.
"Sum-of-the-part based target price of $3.20. The stock is trading at 12.5x FY12F PE below its 4-year average of 13.2x. DOWNGRADE TO HOLD."
Company Name: SINGTEL
Research House: DBS Vickers
DBS Vickers Securities in a May 9 research report says: "We trimmed FY2012F/2013F group earnings by 4%/6% mainly due to Bharti. Bharti may grow slower than expected, eroding SingTel's appeal as a cheap proxy to Bharti. Slow adoption of Android phones in Singapore is not helping SingTel either.
"We are projecting a 70% payout ratio for FY2011F/2012F, towards the top end of SingTel's guidance of 55%-70%. Given non-compelling growth prospects, SingTel needs to (i) increase its earnings payout ratio to 80% to formulate an attractive (6.5%) dividend yield, or (ii) perform capital management proactively on top of its 70% payout ratio.
"Sum-of-the-part based target price of $3.20. The stock is trading at 12.5x FY12F PE below its 4-year average of 13.2x. DOWNGRADE TO HOLD."
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