The company, in which the government holds a small stake, made third-quarter net profit of S$98.6 million ($58.1 million), down from S$369.5 million the same period a year ago when its results were boosted by S$281 million in gains from asset sales.
The figure beat the average of four analyst forecasts of around S$96 million. "The group's newspaper advertising revenue is expected to grow in tandem with the moderating economic growth for the year 2005," Singapore Press Holdings (SPH) Chief Executive Alan Chan said in a statement, adding that the price rise for newsprint should be moderating.
He predicted a rise in 2005 operating profit at SPH, which has a near monopoly on newspapers published in Singapore and owns the 160 year-old Straits Times, from last year's S$338 million.
The government said on Monday that Singapore's economy grew almost twice as fast as expected in the second quarter, beating down talk of recession after a contraction in the first quarter.
Operating revenues at its newspaper and magazine business, its main money spinner, rose 6.3 percent in the third quarter, while sales at the property business rose 8.2 percent.
According to the average of 16 analysts' forecasts compiled by Reuters Estimates, the company is expected to post net profit of around S$458 million for the year ending in August, down 16 percent from S$546 million last year.
Shares in SPH, which has a market value of $4.2 billion, have lost nearly 2 percent in 2005, but its dividend yield -- the annual percentage of return earned by investors -- stands at 3 percent and it boasts a return on equity of 37 percent.
SPH trades at 14.7 times its forecast 2005 earnings, slightly cheaper than Australian newspaper publisher John Fairfax Holdings' 16.2 times, and cheaper than Hong Kong newspaper publisher SCMP Group's 18.8 times, Reuters data shows. John Fairfax publishes the Sydney Morning Herald while SCMP publishes the South China Morning Post.
Three months to May 31, 2005 (in S$Mil unless stated)
| SPH | Q3 2005 | Q3 2004 | 9m 2005 | 9m 2004 |
|---|---|---|---|---|
| Operating profit/(loss) | 111.09 | 87.78 | 296.89 | 263.33 |
Pre-tax profit/(loss) | 129.07 | 383.79 | 487.92 | 585.20 |
Net profit/(loss) | 98.58 | 369.47 | 417.80 | 542.49 |
Group shr (cents) | 7.00 | 15.00 | 28.00 | 24.00 |
| Turnover | 235.72 | 221.67 | 669.18 | 622.18 |
SPH Q3 Results here
SPH Press Release here
SPH Fact Sheet 1 & 2
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Comments - Results are within the lower end of the analysts' expectations but SPH is positive that the full year results will be better than last years'. Mixed signals here, let's see how the mkt reacts tomorrow. My bet is that it'll not go up further.
Report fm KimEng dated 13-Jul here
Maintain BUY
Report fm DBSVickers dated 13-Jul here
SPH reported 3QFY05 results that were within our expectations. PBT, which excludes distorting asset sales and investment income, rose 26.5%. Revenue growth was fairly lackluster, but earnings growth did better following the de-merger of the TV business losses. We maintain our HOLD recommendation and revise up our RNAV-based target price to S$4.61
Report fm CitiGroup dated 13-Jul here
Our 12-month target price of S$5.26 is based on our estimate of SPH sum-of-the-parts valuation. As a cross check, our target price represents a PE multiple of 22X FY05E and FY06E core media earnings, which we think does not look demanding vis-à-vis its peers in the region.
Maintains Buy
Report fm UOBKayHian dated 13-Jul (contact me if u need, ppl I know only)
We estimate SPH's sum-of-the-parts valuation at S$5.11 and our 12-month target price is now S$5.20 (previously: S$5.00). Including an expected annual sustainable net DPS of 20cts (gross DPS: 25cts - basic: 14cts and recurring special: 11cts), we expect SPH to yield a return of 15% within a year. Maintain BUY
4 comments:
Tuesday July 12, 7:57 PM
UPDATE:NKF Withdraws Lawsuit Vs Singapore Press Holdings
SINGAPORE (Dow Jones)--Singapore charity NKF has withdrawn its defamation suit against Singapore Press Holdings Ltd. (T39.SG), a spokeswoman for the charity confirmed late Tuesday.
"The decision to withdraw was a considered decision made in the best interests of the NKF, its supporters, donors and patients," Michelle Ang, the charity's deputy director for communications, said in a statement.
"The (NKF) Board wishes to reiterate its whole-hearted support for Mr. (T.T.) Durai as its CEO and looks forward to carrying on all its life-saving activities with full vigor and strength, and to continue to serve the public to the best of its ability."
NKF, which focuses on people suffering from cancer and kidney failure, had sued SPH over an article in the Straits Times, the media group's flagship publication, in April last year that reported on the charity's expensive fittings in its office building in central Singapore.
News radio station 938 Live said NKF is expected to appear again in court Wednesday afternoon, when the court will decide on the issue of legal costs.
According to local media reports earlier Tuesday, Durai admitted Monday to receiving a salary of S$600,000 in 2004, including bonuses totaling 12 months of his salary. He had also flown first class at the charity's expense.
NKF's suit against SPH started Monday and was originally scheduled to go on for 10 days.
He must hv suddenly realised that SPH now also owns part of MediaCorps which helps NKF to raise the funds to support his salary, bonus, 1st Class Flights,... :D
SINGAPORE (XFN-ASIA) - DBS Vickers Securities said it is keeping its "hold" recommendation on Singapore Press Holdings (SPH), with a one-year target price of 4.61 sgd, given a downbeat outlook for the media industry.
"We see the core newspaper business stagnating along with the overall lackluster media environment and generally slow-growth economy," DBS Vickers said in a research report.
DBS, however, lifted its target price from 4.46 sgd previously.
"After updating our RNAV (revised net asset value) table, our new target price is 4.61 sgd, comprising 1.14 sgd for non-core asset value and 3.46 sgd for the core business," DBS said.
Yesterday, SPH reported its third quarter to May net profit fell sharply to 98.58 mln sgd from 369.50 mln in the absence of exceptional gains that inflated results a year ago. SPH's third quarter results were within DBS' expectations.
SPH had booked exceptional gains from the sale of its Times House property and its stake in Belgacom in the previous financial year. SPH booked a gain from the partial sale of its stake in StarHub in the current financial year.
"SPH should report boring earnings going forward with capital appreciation relying mostly on the sale of Paragon," DBS said.
Market watchers are awaiting news that SPH will divest its non-core Paragon shopping mall, although the company has said it is not in talks with any potential buyers.
DBS forecasts SPH's year to August net profit at 505.3 mln sgd and pegs next fiscal year's at 359.1 mln.
At 2.01 pm, SPH was down 0.06 sgd or 1.33 pct at 4.46 on volume of 2.81 mln shares.
SINGAPORE (XFN-ASIA) - Singapore Press Holdings Ltd (SPH) said its stake in Thailand's Business Day Co Ltd has been diluted to 12.49 pct from from 24. 97 pct following an increase in Business Day's capital.
The dilution is not expected to have a material impact on SPH's earnings and net tangible assets per share for the year to August 2005, SPH said.
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