BUY: UOB Kay Hian - Mar 06, 2006 (ST)

BackMar 06, 2006

Brokers' Take

BUY: UOB Kay Hian

UOB Kay Hian turns more bullish on SPH

Mar 06, 2006
The Straits Times


UOB Kay Hian has raised its target price for Singapore Press Holdings (SPH) from $5 to $5.40, following strong growth in advertising spending over the past two months.

'Our page-counts of The Straits Times in January and February indicate a strong advertising volume growth of 9.8 per cent,' it says.

It has also raised the projected advertising revenue growth for SPH for this year and next year from 5 per cent to 7 per cent, as it expects the uptrend to continue.

'Accordingly, we have raised the projected net profits for FY06 by 3.4 per cent to $410.8 million, for FY07 by 5.4 per cent to $446 million, and for FY08 by 5.6 per cent to $466 million,' it says.

UOB Kay Hian also expects SPH's high dividend yield of 4.5 per cent to lend support to its share price. SPH closed two cents higher at $4.48 on a turnover of 5.5 million shares last

-- UOB KAY HIAN, March 1

Rating: BUY