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UOB KayHian downgrades Singapore Press Holdings (T39.SG) to Hold from Buy; says final dividend priced in as share price has rallied about 4% since early September in anticipation, says Dow Jones.
Notes, FY10’s “sterling performance” due to strong rebound in ad revenue, Sky@eleven’s contribution, low newsprint cost. Expects ad revenue growth to taper off to 7% in FY11, 5% thereafter.
Notes, FY10’s “sterling performance” due to strong rebound in ad revenue, Sky@eleven’s contribution, low newsprint cost. Expects ad revenue growth to taper off to 7% in FY11, 5% thereafter.
Says against single-digit top-line growth (+6.1% on year), earnings outlook flat, while costs will be a concern; forecasts SPH's average newsprint charge-out at US$700/ton by FY12 vs average US$535/ton ($698/ton) in FY10.
House trims fair price by 3% to $4.35 from $4.50; “While the price upside to our revised fair price is a mere 3%, SPH still offers an attractive dividend yield of above 5%.”
Shares +0.9% at $4.26.
Comments
The "Other Revenue/Net Results)" of $50m+ with consecutive losses of $30m+ over two periods should be addressed in Chairman report!
Otherwise, SPH business model needs solid differentiation as leading media regionally. The property sector rides on positive side of the country economy and is very cyclical. If anything, the property sector should be spinned off - to increase ROA/ROE on sustainable basis.