Perhaps our TA (Technical Analysis) expert, TC, can contribute his valuable comments.
Kim Eng Report dated 20-May-05 here
At $4.38, Kim Eng recommended BUY maintained.
Forecast FY05 dividend yield of 8.7% remains a key attraction. As at 1HFY05, the group held S$780m in investible funds (at cost before provision). SPH trades at FY05/06 PE of 13.4x and 16.6x. RNAV is S$6.10 per share, based on a DCF valuation of the group’s core newspaper operations of S$4.88, non-core assets of S$1.06, and cash holdings of S$0.16.
Comments : SPH is one of the core hldgs in my portfolio, forming >25% of my local stocks. My average cost (does not take into acct past year dividends and monies received due to capital reduction) is $4.80 as I have some which were bought in Year 2000 when prices were rather high. Still, I like SPH as it offers good yield and will continue to accumulate or trade when the opportunity arises. Current tgt price is $4.28 or lower as I had recently bought at 4.48 cd and 4.38 xd.
10 comments:
I am just learning to read the TA signals, not an expert yet.
I cannot see the KimEng chart- members only.
Any chance you can send it over and let me view it?
Yeah, can see the chart already.
WAH ...By looking only at price chart you can determine the target price. My kung fu not there yet.
Closed at 4.34, which is +0.04 and good vol. Was hoping to catch it aro' 4.28. Looks like June window dressing by fund mgrs has begun!
SINGAPORE (XFN-ASIA) - Singapore Press Holdings Ltd (SPH) was higher on hopes the media company will soon divest its prime Paragon shopping mall after the property was revalued at 1.38 bln sgd late last month, higher than last year's valuation of 1.2 bln sgd, dealers said.
In early trading, SPH was up 0.04 sgd or 0.93 pct at 4.34 with 160,000 shares having changed hands.
SPH has said before that it may divest non-core assets, including Paragon, within 3-4 years, but analysts believe the process may be accelerated.
In a recent research note, Citigroup said competition among existing real estate investment trusts (REITs) listed on the Singapore Exchange could help SPH to finally divest the Paragon shopping mall.
Both Ngee Ann City and Wisma Atria, near Paragon, were targeted by Suntec REIT as potential acquisitions but the owners, led by German insurer Ergo, were bent on injecting the two properties into Prime REIT, which is planning an initial public offering later this year.
Overnight, Suntec REIT announced that it is buying a total of 12 properties from City Developments and Wing Tai for about 1.03 bln sgd, making it Singapore's largest real estate investment trust by asset size.
SINGAPORE (XFN-ASIA) - Credit Suisse First Boston (CSFB) said it is keeping its "underperform" rating for Singapore Press Holdings (SPH) as the stock is now trading above its fair value of 4.00 sgd per share.
"SPH continues to trade at an above-average price-earnings ratio premium to the Singapore market. In view of the weak growth prospects, we believe that the huge premium is unjustified," CSFB said in a research note.
CSFB said that while job advertising volumes at SPH's flagship newspaper, The Straits Times, rose 15 pct year-on-year in June, product display advertising volumes continued to decline by another 2 pct year-on-year after declining 6 pct in May.
SPH has been seeing buying interest recently on expectations that it will soon divest the Paragon shopping mall on Orchard Road, but CSFB said investors are likely to be disappointed.
"We take the view that the disposal of Paragon is unlikely to happen this year. Also, given the huge cash distribution of 1 bln sgd in June 2004, we do not expect another major cash distribution exercise in the year to August 2005," CSFB said.
At 3.53 pm, SPH was up 0.04 sgd or 0.93 pct at 4.34, with 760,000 shares traded.
SINGAPORE (XFN-ASIA) - Singapore Press Holdings said it is keeping its options open with regard to a possible divestment of the Paragon shopping mall after potential buyers expressed interest.
"We have received many enquiries on Paragon from interested parties and are keeping our options open," SPH said in e-mailed statement in response to queries from XFN-Asia.
Last Friday, SPH rose about 1.40 pct to close at 4.36 sgd per share on hopes that Paragon will be divested soon, enabling the company to increase dividend payout in the current financial year to August.
At 10.19 am, SPH was flat at 4.36 sgd with 284,000 shares traded.
The Paragon, which was recently revalued at 1.38 bln sgd from 1.20 bln sgd previously, is seen to attract buyers particularly real estate investment trust (REITs) which are looking to boost yields through acquisitions.
For instance, Suntec REIT announced last Thursday that it is buying a total of 12 properties from City Developments and Wing Tai for about 1.03 bln sgd, making it Singapore's largest REIT by asset size.
Following is an announcement from Singapore Press Holdings Ltd. (T39.SG):
The Board of Directors of Singapore Press Holdings Ltd ("SPH") wishes to announce that with effect from 4 July 2005, wholly owned subsidiary, SPH Magazines Pte Ltd ("SPHM") realigned its Blu Inc Group companies together with joint venture partner, Simpletech Sdn Bhd ("Simpletech"), by transferring each of their respective 50% stake in the capital of Blu Inc Overseas Pte Ltd ("BIO") to their Malaysian operations under Blu Inc Holdings Malaysia Sdn Bhd ("BIHM") in exchange for proportionately more shares in BIHM. SPHM shall continue to maintain its 50% stake in BIHM.
At the same time, the entire share capital in Blu Inc Ventures Pte Ltd ("BIV") which was formerly held under Blu Inc Overseas Pte Ltd has been transferred to Blu In Media Pte Ltd for the consideration of S$1.00.
BIHM will now concentrate on developing the business operations in Malaysia and Indonesia while Blu Inc Singapore Pte Ltd will concentrate on the business operations in Singapore and China.
None of the directors of SPH has any interest, direct or indirect in the above and this transaction has no material impact on the earnings and the net tangible assets per share of SPH in the financial year ending 31 August 2005.
Issued on 5 July 2005
SINGAPORE (XFN-ASIA) - Singapore Press Holdings (SPH) extended gains, touching a four-week high of 4.52 sgd, amid prevailing hopes it will soon divest the Paragon shopping mall, dealers said.
In a research note, Citigroup Smith Barney said it is possible SPH will sell the property close to its latest valuation of 1.38 bln sgd, which is higher than the 1.2 bln sgd valuation last year.
"The property yield (of Paragon) based on 1.38 bln sgd is (about) 4.5 pct, based on our estimates. Given that Suntec REIT recently bought City Developments portfolio of properties at a 4.40 pct property yield, SPH should have no problems divesting this non-core asset if it wants to," Citigroup Smith Barney said.
If SPH sells Paragon for 1.38 bln sgd, Citigroup expects the bulk of the net proceeds of 580 mln sgd, which is less the 800 mln sgd loan incurred to develop Paragon, to be distribute to shareholders. Citigroup estimates SPH could pay as much as 0.37 sgd per share as a special dividend out of the net proceeds.
SPH said it is keeping its options open with regard to the possible divestment of the Paragon shopping mall after potential buyers expressed interest.
"We have received many enquiries on Paragon from interested parties and are keeping our options open," SPH said in an e-mailed statement in response to queries from XFN-Asia.
SPH was up 0.08 sgd or 1.81 pct at 4.50, off a high of 4.52, with 7.67 mln shares traded.
Citigroup has a "buy" rating on SPH with a fair value of 5.26 sgd per share. The fair value could be increased by 0.30 sgd per share if the higher valuation for Paragon is factored in, it said.
Comments : WOW!
slowly but steadily ....
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