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.

• Revenue and PATMI were within our expectations.
• Public Transport Services revenue/EBIT grew by 12%/30% YoY.
• New schemes rolled out to retain drivers
• 1Q19 Taxi revenue/EBIT fell by 5%/6% YoY due to keen competition from private hire operators in SG and China.
• Maintain ACCUMULATE with an unchanged target price of $2.72.