Better prospects for Singapore Press Holdings’ (SPH) property assets, such as the separately-listed SPH REIT, have prompted UOB Kay Hian Research analyst Lucas Teng to upgrade his rating for the stock to ‘buy’ with a higher target price of $1.74 from $1.22 previously.

His increased target price factors in higher dividend payout ratios for FY2021 to FY2023 ending August as well as a lower conglomerate discount assumption of 10% from 30% previously.

Teng notes that SPH REIT’s 1HFY2021 ended February distribution per unit (DPU) grew 45% y-o-y to 2.44 cents. He believes that retail operations have largely stabilised and as such, there is potential for dividends to be reinstated to a larger extent at SPH’s level after FY2020 saw SPH declare dividends of only 2.5 cents per share to conserve cash.


To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook