Tuesday, January 8, 2013

SingTel

SingTel: CS maintains OUTPERFORM rating and TP of $3.58, but noted the Group continues to face FX headwinds from the strengthening of SGD. The Group is due to report 3Q13 earnings, where the AUD and IDR depreciated by 2.0% and 2.9% during the period. However, the FX headwinds should not outweigh the recovery which CS expects to see in India and growth contributions from key associates, Telkomsel and AIS, which is expected to continue (stable competition, data growth). #Ezion: OSK-DMG notes the strong share price performance is due to expectation of new contracts (following the entry of EDBI as a shareholder). Demand remains strong globally and Ezion is well positioned to capture more new charters given its strong track record. The house notes that the key challenge of funding previously should act as a tail-risk now, with the entry of EDBI and two oil & gas veterans- Tan Boy Tee and Tan Kim Seng as shareholders, will allow Ezion to tap onto their deep pockets to finance new projects. OSK-DMG maintains their BUY call at a TP of $2.16, and noted that the earnings growth did not assume new charters.

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