Morningstar - M1 Limited (B2F) M1 Moat Trend Moved to Negative on TPG Entry Into Mobile Market

Report

Morningstar

Dan Baker

EUR 147.86 For Business Accounts Only

M1 Moat Trend Moved to Negative on TPG Entry Into Mobile Market

We have moved our moat trend for M1 from stable to negative on the likely entry of a fourth operator, TPG, into the Singapore mobile market in 2018. We make no changes to our fair value estimate of SGD 1.70 per share, which we already downgraded for this issue; nor do we change our narrow moat rating on M1, which is based on cost advantage and efficient scale, with the company continuing to earn returns above its cost of capital despite expectations for returns on invested capital to fall from 2...

13/01/2017 13 EN

Underlying

M1 Limited

M1 is a communications company, providing mobile and fixed services to customers. Co. is an operator that provide fourth generation (4G) service, as well as fixed broadband, fixed voice and other services on the Next Generation Nationwide Broadband Network. Co. and its subsidiaries are engaged in the provision of telecommunications services, international call services and fixed services, retail sales of telecommunication equipment and accessories, and customer services. Co. makes available to its mobile and fixed-line customers International Direct Dial services through the 002 and 021 prefixes, as well as a International Calling Card service using prefix 1818.

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SG1U89935555 Singapore

Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

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Analysts

Dan Baker

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The general evaluation of M1 LTD. (SG), a company active in the Mobile Telecommunications industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 1 out of 4 possible stars while its market behaviour can be considered as defensive. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date April 30, 2019, the closing price was SGD 2.05 and its potential was estimated at SGD 2.41.

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M1 Moat Trend Moved to Negative on TPG Entry Into Mobile Market

M1 LTD. sees an upgrade to Slightly Positive due to a better fundamental star rating

Morningstar | M1's Full-Year Result Largely Irrelevant; Still Likely to Be Taken Private at SGD 2.06 per Share

Morningstar | M1's Full-Year Result Largely Irrelevant; Still Likely to Be Taken Private at SGD 2.06 per Share. See Updated Analyst Note from 29 Jan 2019

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

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