Singapore Press Holdings (SPH)

[horlick97]

Some thoughts: 


Granted that the traditional newspaper business is in the decline and SPH will have to find new growth areas. 

But, that does not mean that the information and media business is dead. On the contrary, the biggest companies today are in these or related businesses. Here, I am extending the adjacent businesses of SPH to include those businesses in e-commence and the digital platforms. 

Companies thriving here include the likes of Google, Yahoo, Facebook, Twitter, Instagram, Amazon, Alibaba, etc. Beyond that, you also have those doing e-learning, which is revolutionising the education industry. 

There is so much SPH can do, before resorting to the property business. It is not that the property business is not good. But, within the Temasek staple, there are already other units covering this space. 

So, i would hope SPH can review and challenge itself to be the likes of Google (or the other examples mentioned earlier). It can grow organically or thru M&A.

[weijian]

Some thoughts: 


Granted that the traditional newspaper business is in the decline and SPH will have to find new growth areas. 

But, that does not mean that the information and media business is dead. On the contrary, the biggest companies today are in these or related businesses. Here, I am extending the adjacent businesses of SPH to include those businesses in e-commence and the digital platforms. 

Companies thriving here include the likes of Google, Yahoo, Facebook, Twitter, Instagram, Amazon, Alibaba, etc. Beyond that, you also have those doing e-learning, which is revolutionising the education industry. 

There is so much SPH can do, before resorting to the property business. It is not that the property business is not good. But, within the Temasek staple, there are already other units covering this space. 

So, i would hope SPH can review and challenge itself to be the likes of Google (or the other examples mentioned earlier). It can grow organically or thru M&A.

hi horlick97,
Customer habits have changed and in this space, it requires first mover's advantage. It's probably too late for SPH (to be the likes of Google). They are better off buying some of the startups which they have done but with their origins and current environment (startups look for branded VCs and there are aplenty), it should be far fetch they will find the next Big Thing in the digital space. On the contrary, i think some of their non media acquisitions like Orange Valley are good.

Looking at the way things are moving for traditional media in the US, local newspapers (mainly subscription based) still have a part to play and SPH is like a "local paper" in a sense. The traditional media business will still be profitable as long as they trim enough fat. But previous margins will never come back.

It's also not a bad idea to be in the property business in land-scarce Singapore. You look at the Top10 richest in Spore, excluding foreign imports, there is only 1 chairman from Nippon SEA fame that is a non-property guy (or didn't dabble in property). The rest of rag-to riches guy all either made their fortunes in property or profited immensely from it.

[CY09]

Its is painfully true that most of the crazily rich Singapore families grew their wealth from owning properties; mainly thanks to Singapore rapid economic rise. However, I am of the view it is unlikely for Singapore to maintain its ridiculously high growth of ppty prices (law of large numbers). What worked in the past may not in the future.

Orange Valley is a decent proposition due to Singapore's ageing population, this is where the next phase of growth is likely to be in- providing aged care etc.

[karlmarx]

Print advertisement and circulation continues to fall.

https://links.sgx.com/FileOpen/SPH%20-SG...eID=551221

I wonder where is the bottom for sph's media business.

Dividend will likely be reduced if this is to persist till the end of the year.

Is the market pricing SPH at yields that are too low?

[Shiyi]

Some thoughts: 


Granted that the traditional newspaper business is in the decline and SPH will have to find new growth areas. 

But, that does not mean that the information and media business is dead. On the contrary, the biggest companies today are in these or related businesses. Here, I am extending the adjacent businesses of SPH to include those businesses in e-commence and the digital platforms. 

Companies thriving here include the likes of Google, Yahoo, Facebook, Twitter, Instagram, Amazon, Alibaba, etc. Beyond that, you also have those doing e-learning, which is revolutionising the education industry. 

There is so much SPH can do, before resorting to the property business. It is not that the property business is not good. But, within the Temasek staple, there are already other units covering this space. 

So, i would hope SPH can review and challenge itself to be the likes of Google (or the other examples mentioned earlier). It can grow organically or thru M&A.

[Shiyi]

To begin with, Temasek has no interests in SPH.
Next, it's easier for Tech company to disrupt the traditional business. But an uphill climb for traditional business to transform itself into a tech company. It requires a different skillset and talent. In fact, SPH makes more money from traditional property business than the digital space.

[cyclone]

SPH Expands UK Student Accommodation Portfolio with £133.7 Million Acquisition

Highlights :
* A total of 1,243 beds were acquired, bringing SPH’s total portfolio to over 5,000 beds across 20 assets in 10 cities
* Cash yielding acquisition in a defensive asset class that will enhance recurring income for the Group
* In line with strategy to build UK Student Accommodation portfolio to platform of scale as assets under management (AUM) expands to over S$600 million
* The portfolio spans 3 cities (Southampton, Sheffield and Leeds)  in the UK and has a total capacity of 1,243 beds
* The portfolio comes with a rental guarantee that covers the 2018/2019 and 2019/2020 academic years.

More details in :
1. https://links.sgx.com/FileOpen/SPH%20Ann...eID=553557
2. https://links.sgx.com/FileOpen/SPH%20Med...eID=553558

[Shiyi]

SPH Expands UK Student Accommodation Portfolio with £133.7 Million Acquisition

Highlights :
* A total of 1,243 beds were acquired, bringing SPH’s total portfolio to over 5,000 beds across 20 assets in 10 cities
* Cash yielding acquisition in a defensive asset class that will enhance recurring income for the Group
* In line with strategy to build UK Student Accommodation portfolio to platform of scale as assets under management (AUM) expands to over S$600 million
* The portfolio spans 3 cities (Southampton, Sheffield and Leeds)  in the UK and has a total capacity of 1,243 beds
* The portfolio comes with a rental guarantee that covers the 2018/2019 and 2019/2020 academic years.

More details in :
1. https://links.sgx.com/FileOpen/SPH%20Ann...eID=553557
2. https://links.sgx.com/FileOpen/SPH%20Med...eID=553558

[Shiyi]

Does anybody know if Bidadari property project, being a mixed development, is also subject to QC rule, i.e. selling within five years upon obtaining the land parcel? It seems that SPH is not in a hurry to sell.

[money]

With the declining trend in its media business, i have always held the view that investors are valuing SPH's business at a high premium and overall at a share price of 3.57 now, i think it is overvalued..

Let me try to give my views for its valuation below...

Based on its latest financial statement, its media earned profits of about 33m and property about 39-40m. Due to some impairment losses in its media, i will be generous, i will take it that its long term recurring profits for media is around 40m per quarter

Extrapolating, its profit for media and property will be around 160m each. Due to the fact that earnings have been declining over the years for media, i would attach it with a lower p/e of 12, so i would value it around 1920m. For its property segment, i will value it more generously at p/e of 16 and so around 2560m, so total of 4480m, with a share count of around 1.6b, it works out to $2.80 per share compared to its current price of $3.57.

Actually, my total annual estimated profits of 320m for property and media is very generous because it is before tax and non controlling interests. For comparison, for full year 2015, SPH's total profits to shareholders is actually 321m and it dropped to 265m for full year 2016. In fact my estimate for full year 2017 will be lower than 265m.

I think SPH is way too overvalued and i wouldnt touch it for anything above $3.

well, the market is taking SPH's declining profits in its media business more seriously now

Almost 2 years later, back to review SPH, trading at 2.38 recently, i still thinking it is trading at a unjustified premium. Annual profit is still dropping, leverage has gone up, dividend per share is showing signs of a gradual decrease, and imo, it is trying very hard to grow profits through the aged care and student accomodation, not sure if this is its area of expertise, and it also appears to be capital intensive. If it is to be valued as a property development/investment business, it is trading above its NAV, but most property development companies or reits in singapore are trading below their NAV. I would still give it a pass at today's price