Singapore Press Holdings’ (T39.SG) healthy 6.4% FY10 dividend yield may underpin interest in stock, also likely resilient broad market after gains on Wall Street, says Dow Jones; SPH announces 9 cent final, 11 cent special dividend, +2 cents on year, reports net profit +18.0% on year at $497.9 million, while revenue hits record $1.38 billion, +6.1% on year.

 

But breakdown shows net profit of $75.3 million for 4Q, down 44% on year, down 54% from 3Q, due to lower contribution from property as Sky @eleven project completed. Management says outlook for Singapore economy remains healthy, print ad revenue expected to move in tandem with economy, but adds newsprint prices expected to rise, will closely monitor cost levels.

 

RBS, which has Hold rating, $3.90 target (raised from $3.59), says investors value SPH for stable cash flow generation, “notwithstanding the long-term declining trend in its media business.” Adds expected dividend yield in excess of 7% for FY11 “makes SPH an attractive defensive play.” 

 

Shares ends down 0.2% at $4.22 yesterday; may test $4.27, level not broken since July 2008, then $4.30.