Author: kktan
SPH – BT
SPH seeks opportunities in property, new media
Group will continue to focus attention on core print business
SINGAPORE Press Holdings (SPH) is actively seeking out fresh opportunities for its property and new media arms while enhancing its core print business, the group’s chairman and management told shareholders yesterday.
Shareholders raised a couple of queries over whether dividend yields might fall now that the final contributions from SPH’s Sky@eleven condominium project have been recognised.
Chief executive Alan Chan said that while Sky@eleven was indeed a ‘one-off project’, the group’s property division remains on the look-out for opportunities.
He cited its recent bid for a residential-commercial site at Bedok Town Centre, which was the second highest after CapitaLand joint venture’s bid, as an example of active participation in competitive tendering for projects with high potential. Clementi Mall will begin to contribute a stream of rental income once it is operational early next year, he said.
Acknowledging that shareholders had gained in recent years from the recurring profits Sky@eleven brought, Mr Chan said that the challenge would be for the group to now find new businesses to make up for the difference. These would include, among others, its stake in the OpenNet, which is building the optical fibre network for Singapore’s Next Generation Nationwide Broadband Network, as well acquisitions to strengthen its events and exhibition services arm.
SPH chairman Tony Tan also told shareholders, who filled the News Centre’s auditorium yesterday, that the media and property group would ‘continue to focus our attention on our core print business’, improving content and widening readership. At the same time, ‘we will keep growing our adjacent businesses to secure the company’s long-term growth’, he added.
In the light of how the Internet has challenged the traditional media industry worldwide, new media is ‘an investment we cannot neglect’ to prepare SPH for the future, Mr Chan said in response to questions on when the group’s new media ventures would turn profitable.
He added that its ‘first-generation products’, such as the newspapers’ websites, are in fact already profitable, though ‘second-generation’ ones such as STOMP, RazorTV and ST701 are still being nurtured.
All resolutions to re-appoint or re-elect the board’s directors, including Ascendas CEO Chong Siak Ching, who was appointed as a non-executive director in October, were duly passed by shareholders yesterday.
November 2010
Results Announcement
- 2 Nov 10 : SATS (Q211) – EPS 4.1ct (todate 8.2ct) ; Div 5ct
- 9 Nov 10 : StarHub (Q310) – EPS 4.78ct (todate 10.66ct) ; Div 5ct (todate 15ct)
- 9 Nov 10 : STEng (Q310) – EPS 4.31ct (todate 11.48ct)
- 10 Nov 10 (AM) : SPAusNet (1H11) – Div A$0.04 (Gross)
- 11 Nov 10 (AM) : SingTel (Q211) – EPS 5.6ct (todate 11.52ct) ; Div 6.8ct
- 11 Nov 10 : SBSTransit (Q310) – EPS 4.14ct (todate 14.3ct)
- 12 Nov 10 : ComfortDelgro (Q310) – EPS 2.94ct (todate 8.33ct)
STI = 3144.70 (-13.51)
|
Stock |
Period |
EPS cts |
DPS cts |
Mkt |
Yield |
PE |
Div Breakdown |
|
SPH |
FY10 (Aug) |
31 |
27 |
$4.19 |
6.444% |
13.52 |
Interim 7ct ; Final 9ct + 11ct (Special) |
|
SingPost |
FY10 (Mar) |
8.563 |
6.25 |
$1.16 |
5.388% |
13.55 |
Q1, Q2, Q3 1.25ct ; Q4 2.5ct |
|
STI ETF |
Jun-10 |
— |
3 |
$3.22 |
1.863% |
— |
Jun10 3ct ; Dec09 3ct |
|
SATS |
FY10 (Mar) |
16.7 |
13 |
$2.87 |
4.530% |
17.19 |
Final 8ct ; Interim 5ct |
|
ST Engg |
FY09 (Dec) |
14.78 |
13.3 |
$3.26 |
4.074% |
22.06 |
Final 4ct + 6.28ct (Special) ; Interim 3ct |
Transport
|
Stock |
Period |
EPS cts |
DPS cts |
Mkt |
Yield |
PE |
Div Breakdown |
|
SBSTransit |
FY09 (Dec) |
17.75 |
8.8 |
$1.93 |
4.560% |
10.87 |
Interim 4.5ct ; Final 4.3ct |
|
ComfortDelGro |
FY09 (Dec) |
10.52 |
5.3 |
$1.52 |
3.487% |
14.45 |
Interim 2.63ct ; Final 2.67ct |
|
SMRT |
FY10 (Mar) |
10.7 |
8.5 |
$2.03 |
4.187% |
18.97 |
Interim 1.75ct ; Final 6.75ct |
TELCO
|
Stock |
Period |
EPS cts |
DPS cts |
Mkt |
Yield |
PE |
Div Breakdown |
|
SingTel |
FY10 (Mar) |
24.55 |
14.2 |
$3.10 |
4.581% |
12.63 |
Interim 6.2ct ; Final 8ct |
|
M1 |
FY09 (Dec) |
16.8 |
13.4 |
$2.21 |
6.063% |
13.15 |
Interim 6.2ct ; Final 7.2ct |
|
StarHub |
FY09 (Dec) |
18.68 |
19 |
$2.63 |
7.224% |
14.08 |
Q1 4.5ct ; Q2 4.5ct ; Q3 5ct ; Q4 5ct |
Funds / Infrastructure
|
Stock |
Period |
DPS cts |
Mkt |
Yield |
NAV |
Div Breakdown |
|
SPAus |
2H10 (Mar-10) |
A4.0 (Gross) |
$1.130 |
8.969% |
A$0.94 |
2H10 A4.0ct ; 1H10 A4.0ct |
|
MIIF |
1H – Jun10 |
1.50 |
$0.560 |
5.357% |
$0.830 |
2H09 1.5ct ; 1H09 1.5ct |
* SPAus DPU in A$. Yield is Calculated Using Latest Exchange Rate (1.2669) fm Yahoo
NOTES :
- Mkt Price is as on 30-Nov-10
- SingTel : 1H11 (Sep10) – Interim 6.8ct
- SPAus : 1H11 (Sep10) – A4ct (before tax) / A3.7772ct (after tax) ; 2H10 (Mar10) – A4ct (before tax) / A3.7739ct (after tax)
- StarHub : Q310 (Sep) – 5ct ; Q210 (Jun) – 5ct ; Q110 (Mar) – 5ct
- SATSvcs : Q211 (Sep10) – Interim 5ct
- SMRT : Q211 (Sep10) – Interim 1.75ct
- SingPost : Q211 (Sep10) – 1.25ct ; Q111 (Jun10) – 1.25ct
- SPH : 2H10 (Aug) – 20ct ; 1H10 (Feb) – 7ct
- SBSTransit : Q210 (Jun) – 4.5ct
- ComfortDelgro : Q210 (Jun) – 2.7ct
- MIIF : 1H10 (Jun) – 1.5ct
- ST Engg : Q210 (Jun) – 3ct
- M1 : 1H10 (Jun) – Interim 6.3ct
- StarHub : FY10 Div Policy 20ct ie. 5ct/Q
SingTel – BT
Bharti’s latest woes may be a drag on SingTel
Indian telco may face big fine over cellular licences controversy
Singapore Telecommunications could be weighed down further by its Indian investment as Bharti Airtel is currently mired knee-deep in a controversy which might result in the unsavoury prospect of a billion-dollar government fine.
At the heart of the storm is the Indian government’s allegation that local telcos may have underpaid for a series of second-generation (2G) cellular licences that were issued in 2008, a fiasco which has resulted in the resignation of telecommunications minister Andimuthu Raja.
India’s chief auditor has already indicted the official for undervaluing these licences as he is said to have awarded them to new market entrants based on an outdated policy formulated in 2001.
At the same time, incumbents Bharti, BSNL and Vodafone were reportedly allotted more than their stipulated share of the 2G spectrum without incurring any upfront fees.
According to the Financial Times, the Comptroller and Auditor General of India claims that the bids involving these three operators have cost authorities some US$8 billion in lost revenue.
Citing an unnamed source, the FT further reported that Bharti and Vodafone could be fined more than US$1 billion each as a result of the fiasco. Bharti Airtel is the largest operator in India with a local subscriber base of 143 million.
‘Those who were given more at less will have to pay something back to the government … the exact amount is being worked out but BSNL, Bharti and Vodafone are the ones that benefited the most so they will pay the most,’ an Indian official was quoted as saying.
Besides the three incumbents, the six other operators that are being implicated are Idea Cellular, MTNL, BPL, Aircel, Reliance and Spice.
Some market watchers believe a government charge would hurt some of these new market entrants more than incumbents such as Bharti.
‘We believe some of the recent events in the regulatory environment appear to be negative for new operators as they risk paying heavy fines or surrendering their licences,’ Goldman Sachs said in a recent report on Bharti.
‘We therefore believe the regulatory environment in the next 12-18 months will be more favourable to incumbents than new entrants,’ it added.
Nonetheless, if a huge fine is indeed levied on Bharti, SingTel’s earnings will undoubtedly be further dented by its largest regional investment.
When contacted, SingTel declined comment. Earlier this month, Singapore’s largest operator reported an unexpected 6.7 per cent dip in second-quarter net profit to $892 million.
SingTel, which has a 32 per cent stake in Bharti, was hit by the Indian operator’s African expansion for the second quarter in a row.
The Indian operator acquired Kuwaiti conglomerate Zain’s mobile assets in June this year in a deal valued at US$10.7 billion.
Beyond chipping in its share of the financing costs for the acquisition, SingTel’s earnings were dented by the inclusion of the first full quarter of losses from Bharti’s newly acquired cellular companies in Africa. If these were excluded, SingTel said its net profit would have dipped by only 3 per cent in the second quarter.
SingTel CEO Chua Sock Koong previously said Bharti would need around six months to restructure its operations and profitability should begin to improve by April next year.
SingTel – BT
Bharti’s latest woes may be a drag on SingTel
Indian telco may face big fine over cellular licences controversy
Singapore Telecommunications could be weighed down further by its Indian investment as Bharti Airtel is currently mired knee-deep in a controversy which might result in the unsavoury prospect of a billion-dollar government fine.
At the heart of the storm is the Indian government’s allegation that local telcos may have underpaid for a series of second-generation (2G) cellular licences that were issued in 2008, a fiasco which has resulted in the resignation of telecommunications minister Andimuthu Raja.
India’s chief auditor has already indicted the official for undervaluing these licences as he is said to have awarded them to new market entrants based on an outdated policy formulated in 2001.
At the same time, incumbents Bharti, BSNL and Vodafone were reportedly allotted more than their stipulated share of the 2G spectrum without incurring any upfront fees.
According to the Financial Times, the Comptroller and Auditor General of India claims that the bids involving these three operators have cost authorities some US$8 billion in lost revenue.
Citing an unnamed source, the FT further reported that Bharti and Vodafone could be fined more than US$1 billion each as a result of the fiasco. Bharti Airtel is the largest operator in India with a local subscriber base of 143 million.
‘Those who were given more at less will have to pay something back to the government … the exact amount is being worked out but BSNL, Bharti and Vodafone are the ones that benefited the most so they will pay the most,’ an Indian official was quoted as saying.
Besides the three incumbents, the six other operators that are being implicated are Idea Cellular, MTNL, BPL, Aircel, Reliance and Spice.
Some market watchers believe a government charge would hurt some of these new market entrants more than incumbents such as Bharti.
‘We believe some of the recent events in the regulatory environment appear to be negative for new operators as they risk paying heavy fines or surrendering their licences,’ Goldman Sachs said in a recent report on Bharti.
‘We therefore believe the regulatory environment in the next 12-18 months will be more favourable to incumbents than new entrants,’ it added.
Nonetheless, if a huge fine is indeed levied on Bharti, SingTel’s earnings will undoubtedly be further dented by its largest regional investment.
When contacted, SingTel declined comment. Earlier this month, Singapore’s largest operator reported an unexpected 6.7 per cent dip in second-quarter net profit to $892 million.
SingTel, which has a 32 per cent stake in Bharti, was hit by the Indian operator’s African expansion for the second quarter in a row.
The Indian operator acquired Kuwaiti conglomerate Zain’s mobile assets in June this year in a deal valued at US$10.7 billion.
Beyond chipping in its share of the financing costs for the acquisition, SingTel’s earnings were dented by the inclusion of the first full quarter of losses from Bharti’s newly acquired cellular companies in Africa. If these were excluded, SingTel said its net profit would have dipped by only 3 per cent in the second quarter.
SingTel CEO Chua Sock Koong previously said Bharti would need around six months to restructure its operations and profitability should begin to improve by April next year.
SATS – BT
SATS in talks to buy JAL Int’l unit
SHARES in SATS, formerly Singapore Airport Terminal Services, closed six cents higher yesterday at $2.85 after the ground handler confirmed reports that it is in talks to acquire the inflight meal unit of Japan Airlines International Co Ltd (JALI).
Newswire reports said that JALI was finalising the sale of the unit, TFK Corporation, to SATS. TFK is Japan’s top provider of inflight meals, serving over 30 domestic and foreign airlines.
In response, SATS said in a statement to the Singapore Exchange: ‘SATS, through one of its subsidiaries, is currently in advanced discussions with Enterprise Turnaround Initiative Corporation/JALI in connection with the acquisition of JALI’s stake in TFK.’
‘However, no definitive agreement has yet been reached and the transaction may require regulatory, legal and other relevant approvals and conditions,’ SATS added.
The potential acquisition is viewed as a move which will enable SATS to enter the Japanese market.
SATS said that it would make an announcement should its subsidiary enter into any definitive agreement.
Citing Japanese media, a Dow Jones report said that the negotiations were in the final stages and that the selling price could top 10 billion yen (S$157 million).
The report said that the search for a buyer commenced back in July, with those in the running including Deutsche Lufthansa aviation group and restaurant operator Royal Holdings Co.
Since then, the shortlisted candidates have been reduced to SATS and TFK’s founding family, though ‘JAL and the Enterprise Turnaround Initiative Corp of Japan had given priority rights to negotiate to SATS as of Wednesday’, Dow Jones said.
Aside from its airport services, SATS also has a food business which comprises airline catering, food distribution and logistics, industrial catering as well as chilled and frozen food manufacturing.