Revenue and EBITDA were marginally above our estimates. ARPU from cable TV business was more resilient than expected. Broadband disappointed with a steep drop in ARPU. Cable TV subscribers contracted for the fifth consecutive quarter. The strategic review announced by the company on 15 April 2019 has virtually removed all valuation discounts of APTT against its Taiwanese peers. Since the review, the share price had appreciated 38%. APTT’s peers are trading at a dividend yield of c.4.4% and a EV/EBITDA...
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EBITDA & net profit were within expectations. Full-year net profit was down 44% YoY. Excluding one-off gains in FY18 net profit would have been down 14% YoY. Associates Airtel continued to drag down earnings, expanding its losses to S$98mn. Telkomsel improved 2% YoY with a profit of S$223mn. Globe’s earnings surged 53% YoY on the back of higher data revenue and increase demand for internet services. Digital business is gaining traction, revenue spiked 33% YoY and accounts for 6% of...
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• Revenue missed our estimates due to weakness at its hotel operations while PATMI was within our expectations.
• Recurring income shone, being the only segment that reported YoY revenue growth.
• Singapore residential sales is still going strong - launch of Boulevard 88 (highest unit psf sold to date of S$4.9k psf) in March 2019 comprised c.43% of total sales value.
• Hotel operations in the red, mainly due to US hotel losses and higher net finance costs.
• Proposed c.24% stake in Sincere Property Group would accelerate its entry into China’s residential segment. EPS-accretive notwithstanding accounting reversals. Proposed 70% stake in Sincere’s key commercial asset also bumps recurring income.
• Upgrade to BUY with unchanged TP of S$11.82. Our target price incorporates a 30% discount to RNAV.