Stock Name: M1
Company Name: M1 LIMITED
CIMB in a Sept 20 research report says: "We view negatively M1's decision to end its partnership with Vodafone from 31 Dec 11 as this may shave M1's core net profit by 5-10%, based on our estimates.
"M1 has a roaming partnership with Vodafone whereby users of Vodafone or Vodafone partners roam on M1's network in Singapore. We also gather from the industry that Vodafone provides mobile telephony for multinational companies through M1.
"We maintain our neutral rating on M1 although there are risks to our forecasts and DCF-based target price of $2.63 (WACC 8.5%) as a result of the cessation of the partnership. M1's share price should be supported by its fairly attractive dividend yield 6-7%. MAINTAIN NEUTRAL."
Company Name: M1 LIMITED
| Research House: CIMB | Price Call: HOLD | Target Price: 2.63 |
CIMB in a Sept 20 research report says: "We view negatively M1's decision to end its partnership with Vodafone from 31 Dec 11 as this may shave M1's core net profit by 5-10%, based on our estimates.
"M1 has a roaming partnership with Vodafone whereby users of Vodafone or Vodafone partners roam on M1's network in Singapore. We also gather from the industry that Vodafone provides mobile telephony for multinational companies through M1.
"We maintain our neutral rating on M1 although there are risks to our forecasts and DCF-based target price of $2.63 (WACC 8.5%) as a result of the cessation of the partnership. M1's share price should be supported by its fairly attractive dividend yield 6-7%. MAINTAIN NEUTRAL."
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