Singapore Press Holdings Ltd (SPH) still offers an
attractive yield even after the media and property firm reported
a 5.9 percent fall in 2012 net profit mainly due to lower
investment income, brokers said.
SPH shares were up 0.5 percent at S$4.09 on Monday. The
stock has risen nearly 11 percent so far this year versus the 15
percent gain in the broader Straits Times Index.
SPH posted net profit of S$365.5 million ($299.3 million)
for its financial year ended August, down 5.9 percent from a
year earlier. The company announced full-year dividend of 24
Singapore cents, representing a yield of nearly 6 percent.
Maybank Kim Eng said the yield spread between SPH and
10-year government bond is now 443 basis points (bps), above the
historical average of 350 bps.
The broker expects SPH to declare a dividend of 25 Singapore
cents for 2013 fiscal year, implying yield of 6.2 percent which
it said is still very attractive. Maybank raised its target
price to S$4.50 from S$4.43 and kept its 'buy' rating.
CIMB Research, which has an 'outperform' rating and S$4.39
target price, said SPH's property business remains the star
performer and could help drive dividend payout in 2013. Both
Paragon and Clementi malls had rental increases this year, CIMB
OCBC Investment Research said falling margins highlighted
the increasing uncertainties for SPH's core print business, but
SPH's dividend yield is likely to limit the share price
downside. OCBC has a 'hold' call and S$4.05 target price.
1122 (0322 GMT)
(Reporting by Eveline Danubrata in Singapore;
email@example.com); Editing by Jijo Jacob
10:27 STOCKS NEWS SINGAPORE-Synear surges after bid to take
Shares of Synear Food Holdings Ltd surged after
its main shareholders offered to take the Singapore-listed
Chinese frozen food producer private, valuing the company at
nearly S$256 million ($210 million).
Synear's executive chairman, Li Wei, and his affiliates
already hold 50.13 percent of Synear's issued shares. Their
vehicle, Fortune Domain Ltd, offered to buy the remaining shares
at S$0.186 each.
On Monday, Synear shares rose as much as 6.9 percent to
their highest intra-day level since April 2011, matching the
offer price. More than 28 million shares were traded, about 17
times the average full-day volume over the past 30 days.
Synear was the top-traded stock by volume in the Singapore
market on Monday. Before the offer announcement, the stock had
gained 35 percent this year versus the 24 percent gain in the FT
ST Small Cap Index.
Bosses of Singapore-listed companies are taking their firms
private to take advantage of beaten-down prices and cheap
financing, more than trebling management buyout deals in the
island-state to $10.9 billion compared with the whole of 2011.
1017 (0217 GMT)
(Reporting by Eveline Danubrata in Singapore; Editing by
Prateek Chatterjee; firstname.lastname@example.org)
($1 = 1.2211 Singapore dollars)