Brokers take

M1 | Hold Target price: S$1.63 April 17 close: S$1.82 Maybank Kim Eng, April 17

Despite some variances due to implementation of new contract accounting standards, we believe M1's Q1 2018 results were in line with low expectations (ours and consensus). Increasing competition in the wireless space is likely to constrain the operational and share price performances.

The implementation of SFRS 15 on contract reporting standards has had less of an impact on M1's reported profits than its peers because it had been employing a similar standard for its iPhone accounting. Management guided for a S$13 million one-time, cash-tax impact from the change, but otherwise, operating cashflows remain similar.