M1   

M1

M1 Posts 6.6-per cent Growth in 1H2011 Net Profit

M1 Limited Thursday reported a 6.6-per cent year-on-year growth in net profit to S$85.4 million for the first half ending June 30.

Operating revenue for the same period rose 6.5 per cent to S$503.0 million due to higher service revenue and handset sales. Service revenue benefited from growth in the mobile customer base, as well as fixed services, the group said.

Non-voice services contributed to 35.2 per cent of service revenue, up from 30.8 per cent a year ago, driven by growth in the mobile broadband and smartphone customer base.

During the second quarter, M1 added 34,000 customers, bringing its total customer base to 1.968 million as at June 30. Monthly postpaid churn remained stable at 1.2 per cent in the second quarter.

“M1 achieved another major milestone with the launch of Southeast Asia’s first Long Term Evolution (LTE) dual band network in June 2011. With coverage scheduled to be nationwide in the first quarter of 2012, LTE will better support data growth. We will continue to invest in networks and innovate to deliver a superior mobile internet experience for our customers,” said Karen Kooi, M1’s chief executive officer.

“Based on the current economic outlook and barring any unforeseen circumstances, net profit after tax for 2011 is likely to improve, compared to 2010,” added Kooi.

M1’s board of directors has declared an interim dividend of S$0.066 per share.

M1 Limited closed on Thursday at S$2.570.

 

M1 giving 6.6 cents divdend

 

M1 (FV SGD2.85 – BUY) Corporate News Flash: Giving Life to LTE

M1 has launched Singapore’s first commercial LTE network in selected parts of the republic. The coverage will be progressively expanded island-wide by 1Q2012. The telco is rolling out the service to enterprise customers first until more LTE enabled devices are available in the market. Asia’s first. We believe M1 (29%-owned by Axiata) is the pioneer in the commercialization of a LTE network in South East Asia, having conducted trials over the past year. Its 2 rivals, Singtel and StarHub, plan to launch their LTE networks by 2012 and are in various stages of field test and trials in selected locations. M1 joins the ranks of a handful of mobile operators to have commercialized their LTE networks (mainly in Europe and the US), albeit on a small scale, with a string of trials and committed deployments across the globe. TeliaSonera was the first operator to roll out LTE in Norway back in Dec 2009.

First mover advantage constrained by lack of devices and fledgling eco-system. While LTE is a natural progression for current 3G networks, early adopters are inherently constrained by the lack of handsets and devices, which are only expected to be made available on a wider scale from 2013. As such, we are not surprised that M1 is only making the service available to mobile broadband enterprise customers. This should give it ample time to fine-tune its LTE strategy, address technical glitches and assess other deployment strategies before making the high-speed network available to mainstream small screen customers. The service is currently available in Suntec City, Beach Road, Tanjong Pagar, Shenton Way, Chinatown, Marina Bay and Tanjung Rhu.

 

Maintain BUY. We are leaving our core net profit forecasts of SGD170.4m and SGD187.5m for FY11 and FY12 unchanged for now. While M1’s first mover advantage in LTE is positive in terms of its branding campaign, we see little upside in the short to medium-term until adoption reaches critical mass, accompanying the maturity of the 4G eco-system over the next 2-3 years. The stock’s key share price re-rating catalysts are: (i) the stronger than expected results going forward (ii) potential for further capital management and (iii) better- than-expected take-up of its NGNBN service.

 

M1 is looking good at the moment, holding well at 2.37 after XD. if it is able to over come it's MA resistence at 2.39, it could potentially trade higher to test 2.43. 

http://sgsharemarket.com/home/2011/04/m1-trading-near-support/

 

Yes result out on last Friday.

 

  is m1 result came out?

 

Drop to 2.39 after dividend XD

 

2.51!

 

Telcos is a steady ship during signs of distress in the economy.

Made no mistake , this one will float higher than the rest once the Middle

East mess has cleared up.

 

$2.70 is defintely possible. Buy, strong buy, must buy!!!!!!!!!!!!!!!!!!

 

from the technical charts, M1 looks poised for a short term technical rebound as it re-tested it's major resistence point at 2.39. descending triangle formation is still intact.

http://sgsharemarket.com/home/2011/02/m1-short-term-rebound-descending-triangle-still-intact/

 

if MACD completes the bullish crossover, M1 has a good chance to crack 2.39.

 

M1 seems to be forming a descending triangle with a lower high already formed at 2.48. Last friday's trading saw M1 come back to test resistance at 2.39 which could potentially be another lower high in the making. trade with caution.

  http://sgsharemarket.com/home/2011/02/m1-forming-descending-triangle/

 

Macquarie recommends BUY with Target Price of $2.78

  MobileOne

Past the free cash flow trough

Event

􀂃 We raise our target price for M1 from S$2.50 to S$2.78 and reiterate our

Outperform recommendation, implying a 12-month total return of 22.6%. We

forecast that M1 will be able to maintain its 2010 dividend payout of 100%

(80% regular + 20% special), as free cash flow should improve sharply over

the next three years.

Impact

􀂃 Cash outflows for working capital and capex should decline. FCF fell to

S$71m in 2010 from S$101.7m in 2009 and S$165.6m in 2008, largely as a

result of an increase in capex and working capital investment in handset

subsidies. However, over the next two years, we expect capex to fall and

expect the pace of net working capital investment to decline. As a percentage

of net profit, we expect FCF to increase from 45% in 2010 to 87% in 2011 and

105% in 2012 with some upside risk if the pace of working capital investment

declines more than current forecast.

􀂃 Payout of 100% is maintainable. M1 declared a special dividend of S$0.035,

bringing its 2010 full-year dividend to 100% of net profit as compared to its

policy of a minimum level of 80%. We believe that M1 will be able to maintain

a 100% payout for this year given the improving FCF profile. The balance

sheet is also not a problem with net debt to EBITDA forecast to hit a peak of

1.1x in 3Q11 and fall steadily thereafter.

􀂃 Fixed-line services should see some uplift. As the NGNBN builds out,

M1 will put additional effort into building up its residential broadband and

corporate data services businesses. We continue to view M1 as primarily a

mobile operator although success in fixed-line services does provide some

positive optionality.

Earnings and target price revision

􀂃 We lowered our EPS forecasts by 3% in 2011E and 5.2% in 2012E, largely

on a slower growth outlook for fixed-line services. However, at the free cash

flow level, these declines were more than offset by lower capex, especially in

years 2012 and following. Our new target price of S$2.78 reflects a N-FCF

yield of 7.25% (refer to Asia Telecoms – Data trumps rate increase,

18 January 2010), which is a slight change in DCF methodology from DDM

used previously.

Price catalyst

􀂃 12-month price target: S$2.78 based on a DCF methodology.

􀂃 Catalyst: M1 will go ex-dividend on April 11th for S$0.112 (4.6% yield).

Action and recommendation

􀂃 We retain our Outperform recommendation and note that while clearly a

defensive stock, it also offers an attractive 22.6% total return of which 7.3% is

dividend yield. Better and/or faster than expected success in growing its fixed

services business should be seen as a positive option.

Happy New Year 

 

hear say from KE:::

 

 

M1 - Stay invested (BUY, $2.41 - TP $2.88, MONE.SI / M1 SP, Telco)

Special dividends could become the normal order of business for M1 as capital needs stabilise. Following the declaration of a special DPS of $0.03, management has promised to regularly review the company’s capital structure. Depending on comfort level viz gearing, additional payouts could range from $0.03 to $0.21 a share. Beyond this, 2011 prospects are also becoming more concrete and exciting.

 

 

 

This counter is for dividends only.

 

For capital gains, not quite recommended, not to say that it is bad, as they are better choices.

 

you can check on SGX.com

 

Where do I check when the M1 will reach XD date? Or can anyone tell me about it?

 

Thanks!

 

 

Rotated out of M1 into Singtel

 :)

 

 

Gd dividend stock but dun expect too much upside from this.Sing tele might be better if chose over long term holding.

 

Rev +20.9% NP +0.7%. Margin squeeze. Not good. I wonder if it is due to too many iPhone sold? If so, Apple must be sucking away the profits.