January 12, 2018

We have turned defensive on the telco sector as our channel checks indicate TPG’s network deployment has progressed smoothly and it is on track for the launch of commercial services by end-18. BUY Singtel (Target: S$4.53) due to its geographical diversification and growth from Indonesia, India and Thailand. Yield-oriented investors should consider NetLink NBN Trust (Target: S$0.93). Downgrade to MARKET WEIGHT by UOB Kay Hian.

Singtel Closed at S$3.600

Netlink NBN Trust closed at S$0.835