Sunny Side Up - Singapore Press Holdings, Koon Holdings (KIM ENG)

Sunny Side Up - Singapore Press Holdings, Koon Holdings

What's cooking Singapore Press Holdings (SPH SP, $3.81, BUY, TP $4.60) - Two failed bids at recent land tender exercises could prompt the Singapore Press Holdings (SPH) to become more aggressive in seeking future projects. Or, it could just put property acquisition plans on the back burner as there are fewer sites that satisfy its investment criteria. On our part, we prefer SPH to focus on boosting its digital media revenue stream and returning surplus cash to shareholders. At FY Aug12F PER of 15x and a sustainable dividend yield of 6.4%, the stock still warrants a BUY rating. However, we lower our target price to $4.60. Hot stock Koon Holdings (KOON SP, $0.265, NOT RATED) - Koon has been in the news recently as a model for other construction companies to follow, as its precast business allows for production cost savings in the face of rising labour costs in the industry. The company continues to win new orders and is poised to convert its sizeable orderbook into earnings in the coming year.