CIMB | OCBC |
Singapore Press Holdings Under press-ure
■ FY8/17 core net profit of S$239m (-15% yoy) was within expectations. ■ One-off divestment and revaluation gains masked underlying weakness (media PBT down 42%), while total impairment climbed to S$96m in FY17. ■ SPH’s FY17 DPS of 15 Scts was below expectations and its fifth consecutive dividend cut, lowering its appeal as a dividend play. ■ Restructuring plans not only involve staff reduction, but also investments in new capabilities, and expansion of its reach and portfolio. ■ Maintain Reduce with unchanged SOP-based TP of S$2.38 as we roll forward our valuation and introduce FY20F forecasts
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Venture Corp: Strong growth momentum to continue
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RHB | |
Spackman Entertainment Group Transforming Through Acquisitions
Spackman has announced the acquisition of Take Pictures for a total consideration of SGD3.9m, payable via SGD0.59m in cash and the issuance of 25.7m new Spackman shares at a premium price of SGD0.13/share. It also bought back SMG stock at USD3/share, for a total of USD2.7m, payable by issuing 28.45m new Spackman shares, also at SGD0.13/share. With the expected dilution, our TP dips to SGD0.20 (from SGD0.23, 67% upside). However, with its greater capacity to produce more movies coupled with the strong pipeline of new movies to be launched in 2018, we maintain our BUY call on the stock.
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UOB KAYHIAN | |
StarHub (STH SP) Bulking Up With Broader Capabilities
StarHub has strengthened its post-paid mobile plans with unlimited data over weekends. iPhone X would be available on 3 November but would result in higher handset subsidies in 4Q17 and 1Q18. The revamped leadership and acquisition of Accel Systems & Technologies would strengthen growth at the Fixed Enterprise Group. Maintain HOLD. Target price: S$2.62. Entry price: S$2.38.
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