M1 In Focus

 
 
 
ALP STOCK INVESTMENT CLUB (02dec15)
 
(02dec15) close: S$2.78
12-Ms Target price: S$2.70
 
    1.)   Sector: Telecommunication
 
    2.)   Core business structure: Mobile telecommunications, International call services, fixed services and handset sales.
 
    3.)   Segment that generates the highest revenue: Mobile telecommunications contribute 62.4% of the group total revenue.
 
    4.)   Countries that the business operates: Singapore
 
    5.)   Challenges: Consistently compliance with regulations and service requirements,  provide continued socio-economic benefits, work with industry to maintain consistent technological standards and stay competitive
 
    6.)   Strengths : First operator to offer nationwide 4G service, as well as ultra-high-speed fi­xed broadband and fi­xed voice, Achieved 10% mobile market share within one month of launch, and profi­tability in the fi­rst full year of operations in 1998,
 
    7.)   Significant events:  ‘M1. For everyone’ on May 2014,  ‘Make the connection and Win’ contest, offering residential customers a range of fi­bre broadband services with speeds of up to 1Gbps
 
    8.)  GTI ranking: 41
 
 
     9.)   TABLE:
M1
    10.) Recommendation: Hold. Due to rising competition between Starhub and Singtel. Its revenue growth is quite muted.In addition, we might see a company that is growing its top-line relatively faster than its peers, albeit from a lower revenue base. However, this is a defensive stock due to favourable government Regulation which has high barrier to entry and it is a defensive utility that everyone would use.
COMPILED BY: Edwin Fung
 
DISCLAMER: Readers should not rely solely on information published and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.
 

 

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