M1 kept at ‘buy’ by Daiwa on positive growth outlook

SINGAPORE (June 21): Daiwa has reaffirmed its “buy” call for M1 on the back of an expected growth in revenue in its fixed services segment, according to the report dated June 20.

M1 expects its fixed-services business to be the near-term revenue growth driver, particularly in the corporate segment, which contributed nearly half of its fixed-services revenue in 1Q16, despite only accounting for 10% of its fixed-services customer base.

M1 also sees opportunities in the Internet-of-things (IoT), Cloud and Big Data services segments over the longer term and plans to leverage on its partnerships with VMware, Palo Alto Networks and Huawei to grow its presence. M1 has also invested in its fibre-optic network, expanding from 400km three years ago to 1,000km today.

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