For those still holding SPH - here is the consolation
Singapore Press Holdings: A decent set of resultsBy Suan Teck Kin Wed, 12 Oct 2005, 10:55:19 SGT
Summary: Singapore Press Holdings (SPH) turned in a set of decent results for FY05. Headline revenue rose 3.5% YoY to S$1.02b, driven by better contributions from Newspaper and Magazine segment. However core operating earnings performed much better, gaining 12.7% YoY to S$380m (despite sharply higher newsprint prices) resulting in margin improvements. The above positive results notwithstanding, SPH bottom-line suffered a one-off loss from its media merger, resulting in its net profits for FY05 falling by 9.4% YoY to S$494.7m. In FY05, SPH declared a net final dividend of 15.8 cents, i.e. net normal dividend of 8 cents to and special dividend of 7.8 cents, bringing full year FY05 dividend to 22.8 cents. Going forward brighter GDP growth outlook and pick up in car buying interest should be positive for SPH. However management was more cautious and has guided for comparable performance in FY06. On the outlook for the Group's key property investments, management noted that Paragon's current yield of 4.8% remains favourable and reiterated it is not in a hurry to divest the asset. Aside from the stable core operations, SPH's non-core assets form a substantial part of balance sheet. Using a sum-of-the-parts method, we value SPH at S$5.15, giving an upside of about 5.5%. Dividends remain the key attraction for SPH and we are projecting a net dividend yield of 3.9% for FY06. We resume coverage of SPH with a HOLD rating and target price of $5.15.
FY05 results were decent. Singapore Press Holdings (SPH) released its FY05 results yesterday. Headline revenue rose 3.5% YoY to S$1.02b, driven by better contributions from Newspaper and Magazine segment, including those from Blu Inc. However core operating earnings performed much better, rising by 12.7% YoY to S$380m, due to better cost controls (despite sharply higher newsprint prices) resulting in margin improvements. SPH also recognised an exceptional loss of S$38.5m due to remaining charges associated with the media merger last year. The net effect of all the above was a decline in net profits of 9.4% YoY to S$494.7m. SPH declared a net final dividend of 15.8 cents, i.e. net normal dividend of 8 cents and special dividend of 7.8 cents, bringing FY05 dividend to 22.8 cents. Outlook positive. Going forward, brighter GDP growth outlook and pick up in car buying interest should be positive for SPH. Accordingly we have forecast slightly better operating performance in FY06. However management were more cautious and guided that volatility of oil price could negatively impact its newsprint costs. In spite of the caution, in FY05 management has managed cost well even though oil prices rose by over 50% YTD. Staying patient on Orchard Road. As for the Group's key property investments, management revealed that Paragon's current yield stood at 4.8% giving SPH an attractive return of 10% on equity. SPH also reiterated its patience in disposing the property and see more capital value upside from higher occupancies and spillover effect from the rejuvenation of Orchard Road. Share price valued at S$5.15. Aside from the stable core operations, SPH's non-core assets form a substantial part of balance sheet. Using sum-of-the-parts method (see table for further details), we value SPH's share price at S$5.15. This gives an upside of about 5.5%. Dividends remain the key attraction for SPH and we are projecting a net dividend yield of 3.9% for FY06. We resume coverage of SPH with a HOLD rating.
Summary: Singapore Press Holdings (SPH) turned in a set of decent results for FY05. Headline revenue rose 3.5% YoY to S$1.02b, driven by better contributions from Newspaper and Magazine segment. However core operating earnings performed much better, gaining 12.7% YoY to S$380m (despite sharply higher newsprint prices) resulting in margin improvements. The above positive results notwithstanding, SPH bottom-line suffered a one-off loss from its media merger, resulting in its net profits for FY05 falling by 9.4% YoY to S$494.7m. In FY05, SPH declared a net final dividend of 15.8 cents, i.e. net normal dividend of 8 cents to and special dividend of 7.8 cents, bringing full year FY05 dividend to 22.8 cents. Going forward brighter GDP growth outlook and pick up in car buying interest should be positive for SPH. However management was more cautious and has guided for comparable performance in FY06. On the outlook for the Group's key property investments, management noted that Paragon's current yield of 4.8% remains favourable and reiterated it is not in a hurry to divest the asset. Aside from the stable core operations, SPH's non-core assets form a substantial part of balance sheet. Using a sum-of-the-parts method, we value SPH at S$5.15, giving an upside of about 5.5%. Dividends remain the key attraction for SPH and we are projecting a net dividend yield of 3.9% for FY06. We resume coverage of SPH with a HOLD rating and target price of $5.15.
FY05 results were decent. Singapore Press Holdings (SPH) released its FY05 results yesterday. Headline revenue rose 3.5% YoY to S$1.02b, driven by better contributions from Newspaper and Magazine segment, including those from Blu Inc. However core operating earnings performed much better, rising by 12.7% YoY to S$380m, due to better cost controls (despite sharply higher newsprint prices) resulting in margin improvements. SPH also recognised an exceptional loss of S$38.5m due to remaining charges associated with the media merger last year. The net effect of all the above was a decline in net profits of 9.4% YoY to S$494.7m. SPH declared a net final dividend of 15.8 cents, i.e. net normal dividend of 8 cents and special dividend of 7.8 cents, bringing FY05 dividend to 22.8 cents. Outlook positive. Going forward, brighter GDP growth outlook and pick up in car buying interest should be positive for SPH. Accordingly we have forecast slightly better operating performance in FY06. However management were more cautious and guided that volatility of oil price could negatively impact its newsprint costs. In spite of the caution, in FY05 management has managed cost well even though oil prices rose by over 50% YTD. Staying patient on Orchard Road. As for the Group's key property investments, management revealed that Paragon's current yield stood at 4.8% giving SPH an attractive return of 10% on equity. SPH also reiterated its patience in disposing the property and see more capital value upside from higher occupancies and spillover effect from the rejuvenation of Orchard Road. Share price valued at S$5.15. Aside from the stable core operations, SPH's non-core assets form a substantial part of balance sheet. Using sum-of-the-parts method (see table for further details), we value SPH's share price at S$5.15. This gives an upside of about 5.5%. Dividends remain the key attraction for SPH and we are projecting a net dividend yield of 3.9% for FY06. We resume coverage of SPH with a HOLD rating.
posted by SmartYInvestor at 1:59 AM
1 Comments:
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