Company Name: SINGAPORE PRESS HLDGS LTD
| Research House: UOB KayHian | Price Call: HOLD | Target Price: 4.30 |
UOB KayHian downgrades Singapore Press Holdings to Hold from Buy after the company reported newspaper advertising revenue contracted 5.7% on-year in 4Q12, compared with 3Q12’s 1.3% on-year contraction.
“Traditionally, SPH’s share price has a close relationship with its newspaper AR growth. We see weak AR growth capping share price performance, but this is compensated by an attractive dividend yield of 5.4% (for FY13-15). In today’s global anaemic growth and low interest-rate environment, yield stocks still find favour among investors.”
It cuts its target to $4.30 from $4.50 after revising its sum-of-the-parts valuation; it lowers its FY13-14 earnings forecasts by 8%-10% on lower projected revenue and higher depreciation. The house tips a $3.80 entry price. The stock is up 1% at $4.11.
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