Thursday 16 October 2014

Singapore Press Holdings Limited

UOBKayhian on 16 Oct 2014

FY14F PE (x): 22.5
FY15F PE (x): 21.7
Core earnings were within our expectation. Singapore Press Holdings (SPH) reported a
net profit of S$404m for FY14. Excluding an estimated investment property revaluation
gain of S$76m (net of MI) booked in 4QFY14, we estimate that FY14 net profit would
have been S$328m, in line with our forecast of S$335m. SPH has declared a final DPS
of 14 S cents.
Flat share price but dividend yield is decent. SPH’s print revenue is expected to perform
in tandem with Singapore’s muted GDP growth which is projected at 3.5% for 2014 and
3.8% for 2015. Traditionally, share price has had a good correlation with domestic
economic growth. Share price is expected to be flat, but annual dividend yields of 4.8%
for FY15-17 are decent amid a low interest-rate environment.
Maintain HOLD. We tweak our target price from S$4.20 to S$4.30 which is based on
sum-of-the-parts (SOTP) valuation. Our recommended entry price is S$4.00 and below.

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