UOBKayhian on 10 Jul 2015
FY15F PE (x): 21.6
FY16F PE (x): 21.2
Newspaper advertising revenue down 9% yoy in 3QFY15. Singapore Press Holdings
(SPH) reported net profit of S$98.2m (+9.6% yoy) and S$237.2m (-8.7% yoy) for
3QFY15 (Mar-May) and 9MFY15 (Sep-May) respectively. 3QFY15 net profit was 22%
or S$18m above our estimate of S$80m. The difference was due to investment income
coming in S$9m higher than our estimate as well as lower-than-expected media costs.
Flat share price but dividend yield is decent. Share price is expected to be flat but
annual dividend yields of 4.6-4.8% for FY15-17 are decent amid a low interest-rate
environment. Maintain HOLD and target price of S$4.20 (based on SOTP). Our
recommended entry price is S$4.00 and below.
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