StarHub
Buy
OCBC Investment Research, May 6
Target price: S$3.69
May 6 close: S$3.32
ALTHOUGH service Ebitda (earnings before interest, taxes, depreciation and amortisation) margin hit 33.8 per cent in Q1 2016, versus 30 per cent in Q1 2015, management has kept its 31 per cent guidance for the full year, suggesting that the first-quarter numbers may not be indicative of the performance for the rest of the year.
Nevertheless, management expects service revenue to continue to grow in the low single-digit range, likely supported by its broadband and enterprise businesses. It has also kept its capex payment for this year at 13 per cent of total revenue, excluding the S$80 million spectrum payment due in...
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