Brokers' take

Singapore rigbuilders | Neutral DBS Group Research, Jan 27

Bloomberg reported that Temasek Holdings is discussing various options for Keppel Corp (Keppel) and Sembcorp Industries (SCI), ranging from divesting non-core assets to selling shares, to brace for a prolonged sector downturn.

The divestment of non-core investment like M1 is a strong possibility as it has been parked under the investment arm for several years. This could free up over S$400 million for capital recycling. Our telco analyst has a "hold" call on M1 with TP of S$2.60, implying 10 per cent upside potential.