Singapore Press Holdings (SPH)

[Ben]

Is there anymore catalyst now that its Reit IPO is confirmed? I view Paragon and, to a lesser extent, Clementi Mall as SPH crown jewels. The spinoff will surely have an impact on future profitability of SPH, even though it is still retaining a 70% stake post IPO. Its core printing and advertising businesses are struggling with declining readership and its other businesses and M&A have yet to show results. Can they therefore maintain their past dividends payment? Is SPH still a good-to-have in one portfolio?

The injection of Selatar Mall is another catalyst, but that won’t happen anytime soon.

Another catalyst is how SPH make use of the money raised from IPO. But with its past records of overpaying for something, I am not really optimistic about it.

I am thinking is it better to sell off SPH and invest in its Reit instead? But then again, if one is interested in retail & property businesses, I think CMA is a much better bet, thought its yield is low.