Company Name: SINGAPORE PRESS HLDGS LTD
| Research House: CIMB | Price Call: BUY | Target Price: 4.40 |
CIMB Research raised its target price on Singapore Press Holdings to $4.40 from $4.19 to factor in stronger property earnings, valuations and lower capital expenditure, and maintained its outperform rating.
Shares of the media and property company fell 0.5% to $4.00 on Monday. They have gained more than 8% so far this year.
SPH reported a 13% fall in third-quarter net profit from a year earlier mainly due to a drop in investment income. But CIMB said the company’s underlying performance was “fairly intact”, with recurring profit from media and property up 2.2% year-on-year.
SPH’s property business delivered a 13% rise in rental income from a year earlier, mainly due to a fully operational Clementi Mall, while its Paragon mall posted stronger rental reversions, CIMB said.
With recurring profit as the key determinant for dividends, SPH is expected to repeat dividend per share of 24 cents for the full year, CIMB said, adding that the company’s balance sheet is still strong.
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