Brokers' take

M1 | Sell (maintained) Jan 30 close: S$2.06 Target price: S$1.77 Maybank Kim Eng, Jan 29

M1 recorded a softer Q4 2018 that missed consensus net profit by 7 per cent but beat ours by 15 per cent. Total revenues were driven by equipment sales as wireless service revenues were down quarter-on-quarter (q-o-q) and year-on-year (y-o-y).

Although part of equipment sales is accounted for by contract revenues, net of handset costs, subsidies increased in the quarter. Meanwhile, a significant 17 per cent q-o-q (12 per cent y-o-y) increase in staff costs from bonus provision and expansion in corporate segment hires also pressured the results.