Singapore Press Holdings (SPH)

[CityFarmer]

Hm, not sure if I can post Analysts views, if not please delete this:


DBSVickers
SPH: BUY (Upgrade from HOLD); S$4.31; SPH SP
Pressing towards a REIT
Price Target : 12-month S$ 4.79 (Prev S$ 4.01)
by: Andy SIM CFA +65 6398 7969

• Upgrade SPH to BUY with possible asset value realisation through establishment of REIT
• Formal announcement may be taken as a signal that conditions are ripe and process is ongoing
• Paragon and Clementi Mall, fair market value at S$3bn, are most likely candidates
• TP raised to S$4.79, unlocking value for shareholders; special dividends are key catalysts
...

It is amusing the different on TP by analyst, from $4.01 to $4.79 base on a spin-off announcement.

So what changes deserve such a uplift in TP? Let's see

- The market value of SPH's investment properties does not change, and it is always up-to-date MV
- The media business's fundamental does not change too
- Previous valuation method is the same as current one, the SOTP

So i saw it is "unlocking value" that push-up the price... It is a "add-on value" which might disappear overnight by an announcement.