Stock Name: SPH
Company Name: SINGAPORE PRESS HLDGS LTD
CIMB in a Jan 11 research report says: "We expect slower ad revenue in FY2012 because of a weakening economy. The slowdown had already been apparent in 1Q12 when newspaper ad revenue fell 4% y-o-y on weaker display (-3% y-o-y) and classified (-4% y-o-y), albeit from a high base in 1Q11.
"While SPH tried to keep a tight lid on costs (staff and newsprint costs were up 2% and 4% respectively), this was not sufficient. While risks to its investment portfolio were to be expected given market volatility, SPH surprised with a 90% y-o-y fall in investment income due to unrealised FX losses on investments.
"1Q12 core profit is in line at 25% of our FY2011 estimate and consensus. Stronger property earnings and lower finance costs made up for weaker print and investment income. Target price of $3.90. MAINTAIN NEUTRAL."
Company Name: SINGAPORE PRESS HLDGS LTD
| Research House: CIMB | Price Call: HOLD | Target Price: 3.90 |
CIMB in a Jan 11 research report says: "We expect slower ad revenue in FY2012 because of a weakening economy. The slowdown had already been apparent in 1Q12 when newspaper ad revenue fell 4% y-o-y on weaker display (-3% y-o-y) and classified (-4% y-o-y), albeit from a high base in 1Q11.
"While SPH tried to keep a tight lid on costs (staff and newsprint costs were up 2% and 4% respectively), this was not sufficient. While risks to its investment portfolio were to be expected given market volatility, SPH surprised with a 90% y-o-y fall in investment income due to unrealised FX losses on investments.
"1Q12 core profit is in line at 25% of our FY2011 estimate and consensus. Stronger property earnings and lower finance costs made up for weaker print and investment income. Target price of $3.90. MAINTAIN NEUTRAL."
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