Telechoice is a yield stock that i notice quite long ago. I recall blogging about its full year performance in 2007. Since then i have invested and divested with it.

A note to all: All figures used in this analysis can be found in this spreadsheet here [spreadsheet here >>]

What does it do?

Its a stock that ties up with its parent ST Telemedia to offer Personal Communication Services to mainly ST Telemedia’s pet Telco Starhub and other engineering and network service to it.

What it means is that should Starhub sells more handsets or engage in more capex, it bodes well for Telechoice. Personal Communication Services (PCS) is VERY low margin. Although you can see that it earns quite a fair bit of revenue, its PCS profits are quite small.

Very Strong Share Price through Economic Crisis

Click to see bigger chart

The surprising thing is that every tom dick and harry corrected big during that crisis but telechoice is still range bound. Even now during the recovery, it is range bound as well.

This is likely attributable to the demand for handsets and capex required by starhub for 3G infrastructure remaining strong.

What this means that although it came out of the economic crisis strong and relatively ok (if you are a shareholder holding the shares), a change in business condition might increase its business and profit risk. Read more…