Company Name: SINGAPORE PRESS HLDGS LTD
| Research House: Nomura | Price Call: HOLD | Target Price: 4.28 |
Nomura raised its target price on Singapore Press Holdings to $4.28 from $4.15 after updating its earnings estimates and valuation for the Singapore media and property firm’s retail mall assets, but maintained its ‘neutral’ rating.
SPH shares were flat at $4.01 on Tuesday. The stock has increased nearly 9% so far this year versus the 16% gain in the broader Straits Times Index.
In the third quarter of 2012 fiscal year, property profit before tax grew 42% to $26.4 million from a year earlier on higher rental income from SPH’s Paragon and Clementi shopping malls, Nomura said, noting that both are enjoying full occupancy.
But Nomura said SPH’s August newspaper weekly page count was down 4.6% year-on-year, based on its monthly average, indicating that display advertising was weaker last month.
“While dividend yields remain attractive at 5.5%, given the tepid growth outlook and just 6.7% upside to our revised target price, we maintain our neutral rating on the stock,” Nomura said.
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