BUY: UOB Kay Hian - Mar 06, 2004 (BT)

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Brokers' Take

BUY: UOB Kay Hian

Mar 06, 2004
The Business Times


UOB Kay Hian, Mar 5

SPH has two excellent 'windows' in a year for traders because of speculation about special dividends. The windows are its first-half and full-year results.

Traditionally, the share price moves in the two weeks leading up to the announcement of results. In 2003, it moved 9.9 per cent from $17.20 on March 13 to $18.90 on March 28 prior to the release of H1 FY03 results on March 28. Before final FY03 results were announced on Oct 10, 2003, the share price rallied 11.9 per cent from $17.70 on Sept 23 to $19.80 on Oct 10.

We expect SPH's H1 FY04 results to be released at the end of this month or early next month.

SPH could receive about 148 million euros ($308 million, or 83 cents per SPH share) from Belgacom's IPO listing set for March 22. This should enhance SPH's ability to pay a special dividend in FY04.

We are maintaining our BUY.