Brokers' take

M1 | Neutral Target price: S$2.06 Oct 25 close: S$2.09 RHB Research Institute, Oct 25

9M 2018 core earnings were ahead of estimates, on stronger-than-expected earnings before interest, tax, depreciation and amortisation (EBITDA) margin. Despite the marginal 0.8 per cent quarter-on-quarter (q-o-q) decline in EBITDA, core earnings fell a stronger 5 per cent on higher associate losses. Management has suspended the Q3 2018 results briefing due to the ongoing pre-conditional voluntary general offer (VGO) exercise.

Fixed services remain the fastest growing segment, up 26 per cent year-on-year (y-o-y) in Q3 2018 (9M 2018: +22.6 per cent y-o-y), driven by stronger corporate projects (mainly related to managed services and access). Hence, its service revenue contribution inched higher to 20 per cent in Q3 2018 (Q2 2018: 19 per cent).