Brokers' take

M1 | Sell Target price: S$1.63 Jan 25 close: S$1.89 Maybank Kim Eng, Jan 24

Maintain "Sell" as we expect competitive intensity to increase as TPG and MVNO MyRepublic launch their services this year.

Management disclosed the postpaid subscriber base under contract is about 70 per cent. This contracted proportion is lower than our expectation of about 90 per cent as a result of weak iPhone demand and the increased popularity of SIM-only plans. Assuming this trend prevailed industry-wide, it would provide an opening for new entrants, such as TPG and MVNO MyRepublic to try and poach revenues, if not subscribers, from the incumbents.