M1

M1

Postby millionairemind » Wed Aug 06, 2008 2:42 pm

M1 Offers Fixed Broadband Services

MobileOne (M1) announced that it would offer fixed broadband services. With this, M1 joins StarHub and SingTel in offering both fixed and mobile broadband services. According to M1, it will offer four unlimited data plans. The lowest offers 10 megabits per second (mbps). The other three speeds are 15 mbps, 30 mbps and 100 mbps. With the 100 mbps option, M1 joins StarHub in offering the highest connection speeds in Singapore. The promotional price for the 10 mbps plan is $43.50 a month, with existing M1 customers paying $40.60 a month. For the 100 mbps plan, the promotional price is $88.50 a month with existing M1 customers paying $76.70 a month. Customers will be offered a plug and play cable modem as part of the launch promotion when they sign up for the service.
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Re: M1

Postby blid2def » Wed Aug 06, 2008 3:42 pm

Cable? So they just reselling Starhub services? Doh.
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Re: M1

Postby ishak » Tue Sep 23, 2008 6:24 pm

Low beta stock for value buyers
23 Sep 2008

Price Target : 12-Month S$ 2.20
Reason for Report : Company update
Potential Catalyst: Netco award, Potential capital management

Story
: M1 being a pure mobile player, unlike its competitors, is not affected by (a) rising costs in the pay TV business as SingTel and StarHub fight over content rights (b) dwindling ARPU in the broadband business due to lower pricing plans and looming threat from National Broadband Network (NBN).

Point: We highlight three key points. Mobile competition past its peak in 2Q08. After the introduction of mobile number portability (MNP) in Aug 08, competition in the post-paid mobile business has eased. An evidence is in SingTel’s introduction of iPhone at a significantly higher handset price of S$698 on the cheapest
monthly plan. While competition in the pre-paid mobile segment remains intense, note that M1 has chosen margins over market share.

1. Likely to meet FY08 street estimates. With 1H08 EBITD up 2.5% y-o-y despite MNP introduction, we think M1 should comfortably meet street estimates of flat EBITDA for FY08. Going forward, FY09 and FY10 stand to benefit from cost savings from building its own backhaul network.
2. Limited downside in the worst case. M1’s historical PER range (9x-13x) in the last five years suggests trough price of S$1.62 pegged at 9x FY08 EPS. With about 14 cents annual dividends, this implies limited downside even in the worstcase scenario.

Relevance: The stock is trading below 10x FY08 PER compared to 15x FY08 PER for StarHub and 14x FY09 (Mar year end) for SingTel. Based on M1’s historical PER of (9x- 13x), our TP of S$2.20 is pegged at 12x average FY08-FY09 EPS. We see 22% share upside complemented by 8% dividend yield. Share price catalysts are (i) More news flow on NBN as M1 is the only beneficiary, (ii) Additional potential 10% yield from capital management assuming target of1.5x net debt to EBITDA depends on the decision to participate in OpCo bidding. Upgrade to BUY. M1 remains our top pick in the sector.
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Re: M1

Postby millionairemind » Wed Sep 24, 2008 2:15 pm

M1 Launches Singapore’s First Dual Sim Solution In A Single Handset
M1 has launched Singapore’s first dual post-and-prepaid dual SIM solution in a single handset called DuoSIM. Customers of other local and foreign operators will be able to use the DuoSIM together with their existing SIM card in the same handset. With DuoSIM, customers can easily separate their personal and business calls by switching between lines instead of carrying two handsets. Visitors auto-roaming in Singapore with their home operator can also enjoy local calling rates and other M1 prepaid benefits such as free IDD021 calls to 13 destinations when they use the prepaid M1 DuoSIM M Card on the same handset.
"If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong" - Bernard Baruch

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Re: M1

Postby kennynah » Wed Sep 24, 2008 7:28 pm

borne out of ideas conceptualised in KTVs... :lol:
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M1 - Analyst DBS

Postby ishak » Mon Sep 29, 2008 5:33 pm

MobileOne - BUY - TP $2.2
29 Sep 2008
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Re: M1

Postby kennynah » Mon Sep 29, 2008 7:09 pm

why?
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M1 - Analyst DBS

Postby ishak » Mon Sep 29, 2008 7:16 pm

kennynah wrote:why?


29 Sep 2008
Writing is on the wall - NBN
Story: The award of NetCo contract to OpenNet (SingTel consortium) is as per market expectations. Three new key points to note are:
(i) OpenNet has offered whole price of S$15 and S$50 for residential and non-residential users, compared to cap of S$25 and S$75 imposed by IDA.
(ii) SingTel would transfer its existing network to a new company called AssetCo, which would lease the network
to OpenNet consortium. SingTel has committed to reduce its stake in AssetCo in another five years.
(iii) OpenNet would spend about S$2bn over the next 25 years, including up to S$750m in subsidy.

Point: We highlight three key implications for the sector:
(a) NBN to benefit consumers and business at the cost of service providers. NBN would bring a shift to regulated
wholesale price and multiple retail service providers (RSP) from unregulated price and effective duopoly today. This should result in more competitive pricing and differentiated offerings. We estimate retail price could be S$25-30 per month for 100 Mbps in 2010, compared to S$45-50 for 8-12 Mbps today. This is also supported by the fact that broadband tariff in Hong Kong is less than S$20 for 10 Mbps today.
(b) Less impact on SingTel than StarHub due to its diversified earnings base. StarHub’s existing network may not be able to compete with the high speed and competitive rates offered by NBN. Broadband business constitutes an estimated 20% of StarHub’s earnings, and less than 10% of SingTel’s earnings. These companies may have to contend with lower margin - RSP business in the future.
(c) M1 is the only beneficiary. Unlike SingTel and StarHub, M1 stands to gain from NBN by entering as retail service provider (RSP). Although, RSP opportunities may not be big due to high broadband penetration in Singapore, it would still help M1 to grow its bottom-line.

Relevance: We prefer M1 for its attractive valuations and regular dividend yield of c. 8%. We see more downside for StarHub, and believe that the large valuation gap between it and M1 should narrow going forward. We rule out capital management with FY08 results from StarHub and M1 due to higher borrowing costs. StarHub has indicated that it might wait for six months or more to refinance its debt, which will mature soon.
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Re: M1

Postby winston » Mon Oct 20, 2008 8:05 am

Not vested.

RESEARCH ALERT-UBS cuts MobileOne price target, keeps "buy"

SINGAPORE, Oct 20 (Reuters) - UBS has cut its price target for MobileOne , Singapore's third-largest mobile phone operator, to S$2.21 from S$2.34 after its third-quarter earnings fell below expectations, but kept its "buy" rating on the stock.

"Sentiment on M1 may dampen in the near-term due to weak results," UBS analyst Josh J. Bae said in a note.
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Re: M1

Postby millionairemind » Sat Nov 22, 2008 6:03 pm

MobileOne
Buy

DMG & Partners Securities | Nov 21
close: $1.24

VALUE emerges: Since our last note on MobileOne (M1) on Oct 20, 2008, the stock has dived 26 per cent on the back of weak sentiments in the market, as well as negative newsflow from the telecommunications industry. The other two telcos, particularly SingTel, painted a bleak outlook for the next few quarters. Consequently, despite the fact that the industry is largely seen to be defensive, the telco index FSTTC has fallen by 8 per cent in the past month.

Before the recent slump, M1 has been one of the most resilient stocks. It only fell 4 per cent for the first nine months of the year, far outperforming the Straits Times Index's (STI) 32 per cent slump. Looking back at the past recessions, management revealed that the bad debts are quite insignificant - less than 0.5 per cent of revenue. What investors need to be more worried about is competition. The aggressive marketing by all three telcos has led to surging subscriber acquisition and retention costs, and consequently margins being driven down. Our recent discussions with the telcos suggest that this intense competition will be dying down, at least for now.

In Q3 2008, M1 was hit with a high churn rate of 1.8 per cent, a jump from 1.2 per cent in the previous corresponding period due primarily to SingTel's launch of the iPhone. This should be reduced to the 1.5 per cent level as competition tames.

We have left our earnings estimates at $160.1 million for FY08 (minus 6.8 per cent year-on-year) and $149.1 million for FY09 (minus 6.9 per cent year-on-year). At $1.25, it is trading at PEs of seven times for FY08 and 7.5 times for FY09, which compares favourably against the industry average of 9.4 times.

The yields, at 12.2 per cent for FY08 and 11.4 per cent for FY09, are also the best among the three telcos. We have downgraded our target price for M1 from $1.89 to $1.58, based on our revised dividend discount model. We are upgrading the stock to a 'buy' despite cutting the target price, as it is looking attractive after the recent fall with a potential upside of 26 per cent from current levels.
"If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong" - Bernard Baruch

Disclaimer - The author may at times own some of the stocks mentioned in this forum. All discussions are NOT to be construed as buy/sell recommendations. Readers are advised to do their own research and analysis.
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