Thursday, 12 September 2013

Singapore Press Holdings

UOBKayhian on 12 Sept 2013

FY13F PE (x): 18.9
FY14F PE (x): 21.7

SPH REIT is listed and SPH is ex of one-off special dividend. We lower our earnings and DPS forecasts for FY13-15 to reflect a higher minority interest as Singapore Press Holdings (SPH) now holds reduced stakes in its retail malls though 70%-owned SPH REIT (previously it owned 100% of Paragon Mall and 60% of Clementi Mall). We also lower our target price as SPH’s share price is now ex of one-off special DPS of 18 S cents.

4QFY13 results preview. SPH posted a net profit of S$358.3m for 9MFY13. Excluding an exceptional pre-tax gain of S$85.2m, adjusted net profit was S$263m (3QFY13: S$100.5m). We expect SPH to report a net profit of about S$80m for 4QFY13 and a final DPS of 14 cents (or 3.5% yield). 4Q is usually weaker than 3Q as the latter is usually the strongest quarter in its financial year.

Maintain HOLD and we lower target price to S$4.07 from S$4.25 as share price has gone ex of special DPS. Our recommended entry price is at S$3.80 and below.

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