BUY: Citigroup Research - Dec 22, 2006 (BT)
Citigroup Research, December 20 November adspend appears buoyant: AC Nielsen's advertising expenditure numbers for the month of November showed that newspaper ad expenditure jumped 10.3 per cent. Excluding Today, the rise was still 9.7 per cent.Brokers' Take
BUY: Citigroup Research
Singapore Press Holdings Dec 21 close: S$4.16
Dec 22, 2006
The Business Times
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Adspend may have risen 6.1 per cent for SPH's 1Q: Although October ad expenditure for newspapers was flat, growth in September and November might have produced a growth of 6.1 per cent for SPH's adspend revenues in its 1Q. Anecdotal evidence suggests momentum is strong: Increased display advertising from recent property launches and new campaign from retailers (ex-Courts) suggest the momentum for newspaper ad expenditure is improving. Display ads and classified growth on track: Our forecast of 3 per cent growth in display and 6 per cent growth in classified appears on track for FY07. If the momentum for display ads and classified continues, there would be upside risks to our earnings. Reiterate 'buy/low risk (1L)' rating: Potential catalysts for re-rating include improved prospects for its core media business and launch of its Times Industrial Building site project. The net yield of 6 per cent also looks attractive. SPH is trading below our sum-of-parts valuation of S$5.15, while the implied value of the core media business is at 15 times FY07E PE.
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