Singapore Press Holdings (SPH)

(20-03-2013, 06:51 PM)a74henry Wrote: Having SPH realise these assets and distributing to shareholders is possible. Look at Keppel Corp which distributed K-Green and SIA which distributed SATs to its shareholders.

Carry out capital reduction is possible, but not quite right in timing IMO. SPH media business is undergoing transition from paper to digital platform.

(20-03-2013, 07:56 PM)CityFarmer Wrote:

(20-03-2013, 06:51 PM)a74henry Wrote: Having SPH realise these assets and distributing to shareholders is possible. Look at Keppel Corp which distributed K-Green and SIA which distributed SATs to its shareholders.

Carry out capital reduction is possible, but not quite right in timing IMO. SPH media business is undergoing transition from paper to digital platform.

Transformation to digital platform will require the a new business model. Are people willing to pay for reading news on a tablet, PC and the latest spectacles (allows viewers to surf the internet with eye movement)?

Kim Eng latest report on SPH

http://remisiers.org/cms_images/research...103131.pdf

Just the first step into property. We raise our target price to SGD4.95 after factoring in REIT benefits. BUY SPH. This is just the first step of what is likely to turn out to be a multi-year value unlocking process. SPH’s confirmation of a retail REIT spin-off in the future adds another, more exciting dimension to the stock. We have long speculated that it could become more aggressive on the property front, and this has materialised. The greatest concern right now is its limited supply of sponsor assets, which can be overcome by introducing new partners, more acquisitions or expanding overseas.

Immediate benefits from spinoff. We believe the proposed REIT can fetch a potential distribution yield of 5.6%, relatively attractive when compared to the average S-REIT yield of 5.3% at this end of the yield compression cycle and even lower returns from fixed income. The market now expects a special dividend from the spinoff, which we have estimated at SGD1b (SGD0.63 a share) assuming tax savings from a REIT structure and debt repayment.

Looking beyond. However, we believe that the market has not yet fully factored the upside from property in the long term. Options include (1) roping in asset owner partners to expand the asset pipeline, (2) directly acquiring suitable assets in Singapore, and/or (3) expanding outside Singapore to other countries. Partners are likely to be smaller asset owners that cannot form their own REIT and that may find it more convenient to work with a big player who can provide the financial heft and management muscle.
Thinking outside the box. BUY. We maintain BUY on SPH, with a raised target price of SGD4.95 based on SOTP. Dividend yield still looks attractive at 5.7% even after recent share price surge. We believe we are the first broker to highlight the possibility of potential partners that would address concerns that, as sponsor, it does not have a long enough tail of injectable assets, and extend SPH’s attraction as a property play to augment its waning media business.

Sph buyinG over sgcarmart for 60 mil .... Damn good strategic move

(01-04-2013, 07:08 PM)toiletsiao Wrote: Sph buyinG over sgcarmart for 60 mil .... Damn good strategic move

Garnering more eye balls for their advertising dollar via their digital platforms with this investment.

(Vested)

ACQUISITION OF SGCM PTE. LTD.

Goodness! 60 million for sgcarmart? Has SPH gone mad? They paid $7.1 million for Hardwarezone and 18 million for shareinvestor.com

SPH buys HWZ for S$7.1 million
SPH completes acquisition of Shareinvestor.com

I'm struggling to see how sgcarmart can be worth more than double what HWZ and SI combined? What am I missing?

(vested)

(01-04-2013, 07:48 PM)lonewolf Wrote: ACQUISITION OF SGCM PTE. LTD.

Goodness! 60 million for sgcarmart? Has SPH gone mad? They paid $7.1 million for Hardwarezone and 18 million for shareinvestor.com

SPH buys HWZ for S$7.1 million
SPH completes acquisition of Shareinvestor.com

I'm struggling to see how sgcarmart can be worth more than double what HWZ and SI combined? What am I missing?

(vested)

Well, 60 million and all in cash. It is quite a sum, especially so when most of the money is on goodwill. The NAV of the acquisition is not disclosed, but i believe it should be much less than 60 million, and the valuation is mainly on IP and business prospects.

Its strategic la... Sgcarmart is canniblising sph's classfied car sales section...sgcarmart is the de facto website if a dealer / private car owner wants to post their cars on sale... The listings are not free..with the acquisition of this site sph can provide a more holistic advertising package for the car dealers likw bmw,audi etc.. There isnt one car dealer i dunno that dont use sgcarmart to post their car listing...the contnent that is in sgcarmart is damn hard to replicate too..look at STcars u know liao..heck i even use sgcarmart to chk for parking rates before i go someplace...

(01-04-2013, 08:58 PM)CityFarmer Wrote: Well, 60 million and all in cash. It is quite a sum, especially so when most of the money is on goodwill. The NAV of the acquisition is not disclosed, but i believe it should be much less than 60 million, and the valuation is mainly on IP and business prospects.

The question to me is how will this fold into their online strategy? They have been pushing their STcar portal aggressively in the last 6 months but anecdotal (mainly mine) evidence suggest most people go to SGCM.

Logic would suggest to leverage on SGCM's brand name and merge STcars into this, but that would suggest that someone up there in SPH's management made the wrong call in the first place to pump money in STcars.

(not vested)

(01-04-2013, 09:20 PM)LionFlyer Wrote:

(01-04-2013, 08:58 PM)CityFarmer Wrote: Well, 60 million and all in cash. It is quite a sum, especially so when most of the money is on goodwill. The NAV of the acquisition is not disclosed, but i believe it should be much less than 60 million, and the valuation is mainly on IP and business prospects.

The question to me is how will this fold into their online strategy? They have been pushing their STcar portal aggressively in the last 6 months but anecdotal (mainly mine) evidence suggest most people go to SGCM.

Logic would suggest to leverage on SGCM's brand name and merge STcars into this, but that would suggest that someone up there in SPH's management made the wrong call in the first place to pump money in STcars.

(not vested)

IMO, the key point is not wrong call on STcar, then bought SGCM. Trial and error is part and parcel of management.

IMO, the key point is over-paying the acquisition.