Daiwa forecasts Singapore Press Holdings (T39.SG) will report a 1Q FY11 adjusted net profit of $126.6 million (down 12.5% on year), “due primarily to a lack of property-development business in 1Q” (says Clementi Mall will contribute only in 2Q) on revenue of $344.0 million.

The house’s forecast is 9.6% above consensus “which we attribute to our forecast of continued strong advertising volume growth throughout FY11 due to a resilient domestic consumer economy.”

Says key factors that investors should focus on are the on-year advertising revenue trends and newsprint costs.

Keeps its $4.10 target price and maintains its Hold rating “as we believe that SPH remains a good defensive investment. However, we view SPH’s share price as being fully valued.”

Adds the FY11E dividend yield of 6.8% “seems reasonable” compared to other yield plays. Results due Friday after the market close. Shares ends Monday off 0.3% at $3.95.