SPH

SPH :

SINGAPORE, 10 April 2018 – Singapore Press Holdings Limited (SPH) reported a flat half year performance for 1H 2018, with a net profit attributable to shareholders of $100.6 million which was $1.4 million or 1.4% higher than the same period last year (1H 2017), in its results announcement for the second quarter ended (2Q 2018) and first half ended 28 February 2018 (1H 2018) today.

Looking through the financial nos for 2Q, total net profit dropped 21.8% to $49.9m versus $63.9m as compared to last year.

Total Net profit for 2nd Half is slightly higher than last year by 1.4m which is boosted due to some divestment gain from 1Q. Without this divestment gain, I think the overall net profit for Half year will be lowered.


 Group Performance Group operating revenue of $492.5 million for 1H 2018 was $23.8 million or 4.6% lower, compared with 1H 2017.

Revenue for the Media business for 1H 2018 decreased by $40.4 million or 10.9% to $329.5 million. Revenue for the Property segment of $121.7 million was stable year-on-year (“y-o-y”).

The Property segment, which accounts for close to 60% of the Group’s profit, continued to provide a steady income stream and stability to the Group’s financial performance.

Revenue from the other businesses grew $17.3 million or 72.4% to $41.3 million, led by contributions from the aged care business.


Recurring earnings of $117.3 million was $6.5 million or 5.3% lower than 1H 2017 as cost savings cushioned the decline in revenue.

For 2Q 2018, group recurring earnings dipped $3.6 million or 6.9% to $49.4 million in tandem with revenue decline. Revenue for the Media business for 2Q 2018 was $155.6 million. The 7.4% y-o-y decline in the second quarter was an improvement compared with the 13.9% y-o-y fall reported in the first quarter.

NAV of 2.14.
EPS for first Half year is 6 cents.
Estimated EPS for full year is about 13 cents.
PE is about 19.15 times.

Glancing through the past years financial numbers, we can notice that the Total Revenue is drifting lowered and lowered each year from 2013 (1231m)  to 2017(1018m).

Total Net income has also been generally decreasing from $404m in 2013 versus $361m in 2017.

Dividend has been slashed from 15 cents to 9 cents.

Ops cash flow is still rather quite healthy as reflected on the table below:

6 cents dividend was being declared for this interim dividend.

It seems that the Print Media lower revenue was being able to cushion off by other revenue from property, digital media , healthcare, other businesses.

I think the fair value for this counter is about $2.40.
Current price is more or less training at full value.

Not a call to buy or sell.
pls do your own due diligence.