德银-亚太地区-电信行业-亚太电信业一览：狗年大吉-20180220-23页.pdfVIP

Asia-Pac Telecoms Deutsche Bank Markets Research Asia Industry Date Australasia Asia-Pac Telecoms 20 February 2018 Japan Telecommunications Industry Update Telecommunications Screener: Year of the Dog Peter Milliken, CFA Measuring relative value in an underpriced sector While the APAC ex-Japan market is back at pre-GFC highs, telcos need to rise Research Analyst 41% to get there, and are up just 27% from GFC lows. As a result, half of the +852-2203 6190 USD10bn+ Asian telcos now sell at or below 12x 2018 P/E. Sector relative P/E has James Wang dropped to 1.0x, a level only exceeded this decade during the GFC. While 1x may Research Analyst not sound low, this is a sector picking up from the low end of its margin cycle, that +852-2203 6145 pays out the vast majority of earnings. This report attempts to screen for where rebounds are potentially available, with China Mobile, Telstra, Singtel, StarHub Srinivas Rao, CFA and China Telecom standing out. CT, CM and TLS, for example, are close to two Research Analyst standard deviations cheap on relative P/E. Interestingly, StarHubs outgoing CEO +65-6423 4114 just bought SGD0.5m of stock. We would have made insider transactions a factor - but it is so rare in telcos, it seemed pointless.