Author: tfwee
June 2008
|
Stock |
Period |
DPS ct |
Price |
Yield |
PE |
Div Breakdown |
|---|---|---|---|---|---|---|
|
SPH |
FY07 : Aug |
26.0 |
S$4.25 |
6.118% |
13.28 |
Interim 7ct ; Final 9ct + 10ct (Special) |
|
SingPost |
FY08 : Mar |
6.25 |
S$1.10 |
5.682% |
14.16 |
Q1 1.25ct ; Q2 1.25ct ; Q3 1.25ct ; Q4 2.5ct |
|
Sing Food |
FY07 : Dec |
5.0 |
S$0.785 |
6.369% |
12.87 |
Interim 1.8ct ; Final 3.2ct |
|
STEng |
FY07 : Dec |
16.88 |
S$2.75 |
6.138% |
16.22 |
Final 4ct + 10.88ct (Special) ; Interim 2ct |
|
Stock |
Period |
DPS ct |
Price |
Yield |
PE |
Div Breakdown |
|---|---|---|---|---|---|---|
|
SBSTransit |
FY07 : Dec |
17.25 |
S$2.17 |
7.949% |
13.26 |
Interim 6ct ; Special 8ct ; Final 3.25ct |
|
ComfortDelgro |
FY07 : Dec |
10.15 |
S$1.50 |
6.767% |
13.98 |
Interim 3.125ct + Special 3.375 ; Final 3ct + Special 1.5ct |
|
SMRT |
FY08 : Mar |
7.75 |
S$1.86 |
4.167% |
18.79 |
Interim 1.75ct ; Final 6.0ct |
|
Stock |
Period |
DPS ct |
Price |
Yield |
PE |
Div Breakdown |
|---|---|---|---|---|---|---|
|
SingTel |
FY08 : Mar |
12.5 |
S$3.62 |
3.453% |
14.54 |
Interim 5.6ct ; Final 6.9ct |
|
M1 |
FY07 : Dec |
15.4 |
S$1.88 |
8.191% |
10.16 |
Interim 2.5ct + 4.6ct (Capital Reduction) ; Final 8.3ct |
|
StarHub |
FY07 : Dec |
16.0 |
S$2.85 |
5.614% |
15.22 |
Q1 3.5ct ; Q2 4.0ct ; Q3 4.0ct ; Q4 4.5ct |
|
Stock |
Period |
DPS ct |
Price |
Yield |
NAV |
Div Breakdown |
|---|---|---|---|---|---|---|
|
SPAus |
2H : Mar-08 |
A5.6225 |
S$1.41 |
10.457% |
A$1.08 (NTA) |
2H A5.6225ct ; 1H A5.6142ct @ 1.2585 |
|
MIIF |
2H : Dec-07 |
4.25 |
S$0.795 |
10.692% |
$1.31 |
2H 4.25ct ; 1H 4.15ct |
|
MacCookPSF |
FY09 : Jun |
A1.75 (Gross) |
S$0.665 |
13.802% |
A$1.033 |
Q408 A2.31ct ; Q308 A2.31 @ 1.2525 ; Q208 A2.31ct @ 1.2485 ; Q108 A2.31ct @ 1.3144 |
* SPAus and MacCookPSF DPU in A$. Yield is Calculated Using Latest Exchange Rate (1.3112) fm Yahoo
NOTES :
- Mkt Price is as on 30-Jun-08
- MacCookPSF : FY09 (Jun) – A1.75ct (Gross ie. before with-holding tax) / Quarter ; Source : SGX
- MacCookPSF : Q408 (Jun08) A2.31ct ; Q308 (Mar08) A2.31ct @ 1.2525 ; Q208 (Dec07) A2.31ct @ 1.2485 ; Q108 (Sep07) – A2.625ct (Gross) / A2.31ct (After With-hldg Tax)
- SPAus : 2H08 (Mar08) – A5.788ct (before tax) / A5.6225ct (after tax) ; 1H08 (Sep07) – A5.776ct (before tax) / A5.6142ct (after tax)
- SingTel : Q408 (Mar) – Final 6.9ct ; Q208 (Sep07) – Interim 5.6ct
- StarHub : Q108 (Mar) – 4.5ct
- SingPost : Q408 (Mar08) – 2.5ct ; Q308 (Dec07) – 1.25ct ; Q208 (Sep07) – 1.25ct ; Q108 (Jun07) – 1.25ct
- SMRT : Q408 (Mar08) – Final 6.0ct ; Q208 (Sep07) – Interim 1.75ct
- SPH : 1H08 (Feb) – 8ct
- MIIF : 2H07 (Dec) – 4.25ct ; 1H07 (Jun) – 4.15ct
- ST Engg : Q407 (Dec) – 4ct + Special 10.88ct ; Q207 (Jun) – 2ct
- ComfortDelgro : Q407 (Dec) – 2.65ct ; Q207 (Jun) – Interim 3.35ct + Special 4.15ct
- SBSTransit : Q407 (Dec) 3.25ct ; Q307 (Sep) – 8ct ; Q207 (Jun) – 6ct
- Sing Food : Q407 (Dec) – 3.2ct ; Q307 (Sep) – 1.8ct
- M1 : 2H07 (Dec) – Final 8.3ct ; 1H07 (Jun) – Interim 2.5ct + Capital Reduction 4.6ct
SPH – BT
SPH’s Paragon valued at $2b
SINGAPORE Press Holdings’ Paragon shopping centre in Orchard Road is now worth $2 billion, about 10 per cent up from its valuation of $1.82 billion a year ago.
The higher valuation came amid higher rents and continued strong demand.
‘Rents are firm, increasing as of last June. Occupancy is at 100 per cent,’ said Lydia Sng, executive director of valuations for property consultancy Knight Frank, which carried out the latest valuation yesterday. The earlier valuation of $1.82 billion on June 28, 2007, was also done by Knight Frank.
The Paragon is undergoing a $45 million makeover to update its facade and increase retail space. The renovation is slated for completion in October.
SPH said earlier that the makeover was part of a continuous effort to enhance the retail environment and shopping experience for Paragon customers.
In addition, the commercial space above its retail podium will be expanded – at a cost of $37 million, including the payment of land premium. This is scheduled to be completed by end-2008.
The total cost of the facade makeover and the addition of commercial space is $82 million.
Paragon remains open and operates as it normally does during the renovation period.
SPH will be releasing its financial results for the third quarter ended May 31, 2008, on July 11.
SingTel – BT
SingTel raises stake in Globe to 47.34%
SINGAPORE Telecom is raising its stake in associate Globe Telecom to 47.34 per cent from 44.47 per cent.
In a statement yesterday, SingTel said that it will pay Ayala Corporation 4,598 million pesos ($140 million), or 1,210 pesos per share, for 3.8 million shares in Globe, the second largest telco in the Philippines.
According to Bloomberg, Ayala owned 33.3 per cent of Globe before the deal.
SingTel said that the price was arrived at on a willing-seller willing-buyer basis, taking into account projected future cash flows, comparables and the prevailing market price.
On Thursday, the closing price of Globe on the Philippine Stock Exchange was 1,185 pesos.
SingTel bought its initial 44.47 per cent stake in Globe in 1993 for $882 million.
‘This transaction is in keeping with our strategy to increase our holdings in our regional associates when the conditions are right,’ said SingTel spokesman Chia Boon Chong.
SingTel has said that its acquisition strategy is to raise stakes in associates or invest in new markets, focusing on Asia.
In September last year, SingTel spent $1.17 billion on a 30 per cent stake in Warid Telecom, Pakistan’s fourth-largest mobile operator, with 14 million customers.
For SingTel’s financial year ended March 31, 2008, Globe’s pre-tax profit contribution to the group was up 9.4 per cent to $317 million, benefiting from 8 per cent appreciation of the peso.
For the first quarter of 2008, Globe reported core net income of 3.5 billion pesos, down 4 per cent as customers cut spending while struggling to cope with rising food and fuel prices.
Globe president Gerardo Ablaza said in April that sales were weakening and it would be difficult to match last year’s double-digit growth rate.
The Philippines’ economic growth is expected to ease from last year’s 31-year high of 7.3 per cent as a possible recession in the US, its main trading partner, hits exports and as rising inflation crimps consumer spending.
The World Bank expects growth in the Philippines to slow to 5.9 per cent this year.
But the economic slowdown has not dampened new cellphone subscriptions. Globe’s mobile subscribers rose 26 per cent to 21.3 million from a year ago.
Globe has 38 per cent of the Philippine mobile industry, against rival PLDT’s 55 per cent.
Thomson Medical – DMG
Thomson delivers
TMC recorded a 16.3% YoY increase in 3QFY08 net profit to S$2.9m, on the back of a 12.9% YoY increase revenue. The results were in line with expectations. Revenue growth was boosted by the successful upgrading of some of its wards, the opening of another Thomson Women’s Clinic, the addition of a senior O&G consultant and the increase in foreign patients. Management intends to continue its upgrading programme to meet the demands of its patients and improve its performance. We maintain BUY, with a target price of S$0.76.
3QFY08 results within expectations. TMC achieved revenue of S$15.7m in 3QFY08, on the back of a 14.7% YoY increase in the number of babies delivered. The successful upgrading works of some wards in FY07 and increased patient referrals from its Thomson Women’s Clinics contributed to the 12.9% YoY increase in revenue. Although operating expenses increased,
TMC was still able to improve its gross profit margin (3QFY08: 44.8% vs 3QFY07: 44.3%) and net profit margin (3QFY08: 18.2% vs 3QFY07: 17.7%). This was helped by the fee increase which TMC implemented in January 2008.
Continued upgrading and expansion of hospital expected to boost revenue. TMC intends to push ahead with its plans to renovate its Level 3 inpatient ward in 4QFY08. It has plans to also upgrade its Level 5 into a premier ward, to meet the growing demand for premium facilities and services. This would allow TMC to raise its fees, which would contribute to further revenue growth. In order to meet the increasing demand for surgical procedures, TMC will also be adding two more operating theatres to its current four.
Outlook for both business segments remain positive. With the upgrading plans in place, the Hospital Operations and Ancillary Services segment is positioned for growth. This is underpinned by the increasing patient referrals from its expanding network of Thomson Women’s Clinics. The Thomson Fertility Centre recorded an increase in overall patient load, particularly Indonesian patients (+35% YoY). As it continues its marketing efforts in the
region, patient load is expected to rise. This would boost contribution from the Specialised Services segment.
We estimate earnings of S$11.2m (EPS: 3.8 cents) for FY08 and S$12.3m (EPS: 4.2 cents) for FY09. We have a fair value of S$0.76 for the stock, based on 19x P/E FY08/09 earnings, which is a discount to its peer average of 26x, taking into account its smaller market capitalization. We maintain our BUY recommendation on TMC.
StarHub – Morgan Stanley
Capital Management More Visible
Conclusion: We upgrade StarHub to Overweight from Equal-weight with a slightly higher price target of S$3.25. Aside from the 19% upside to our price target, the stock offers a dividend yield of 6.5%, pointing towards a total return of 25% on a 12-month view. StarHub offers a solid defensive option in the midst of continued volatility in equity markets, given the stock’s attractive dividend yield and high earnings visibility.
Rationale for Our Upgrade:
1) We expect the competitive environment in the mobile market to stabilize, as operators have re-contracted 80-90% of postpaid subscribers. In our recent meetings, all operators maintained their margin guidance for ’08, which implies improving competition in 2H08.
2) We expect StarHub to announce S$400-500 million capital management initiative in 2H08, as the company’s gearing levels are running below targets and further progress on NGN discussions implies management has better visibility on medium-term capex plans.
3) Competitive threats from NBN are not expected to emerge until 2010-11. Moreover, the fact that both consortia have existing operators as dominant players implies modest disruption to competitive environment even in the medium term. STH’s bundling strategy remains a key long-term competitive advantage.
Valuation: StarHub shares are now trading at ’09E P/E of 12.9x and ’08E dividend yield of 6.5%, which is 300 bps above the Singapore government bond yield. We believe earnings visibility is improving and dividend yield is attractive.