Author: tfwee

 

SPH – BT

SPH launches new logo to signal future direction

Rebranding portrays group’s stature as top media outfit that is moving beyond just print

Singapore Press Holdings (SPH) yesterday launched a new corporate logo to mark the start of its 25th anniversary celebrations.

‘With SPH moving beyond print, it is time to rebrand ourselves to better represent our current portfolio and future direction,’ said SPH chairman Tony Tan.

Together with guest-of- honour President SR Nathan, Dr Tan unveiled the new logo at SPH’s News Centre headquarters yesterday, to fanfare and confetti.

The event, which kicked off to local street percussion band Strikeforce’s beats, was witnessed by the outgoing Minister for Information, Communication and the Arts Lee Boon Yang and Rear Admiral (NS) Lui Tuck Yew who is taking over Dr Lee’s position.

Also present were SPH directors including deputy chairman Cham Tao Soon, former minister for communications and information Yeo Ning Hong, former chief justice Yong Pung How, and former ministry of finance permanent secretary Ngiam Tong Dow, as well as business associates such as UOB’s chairman Wee Cho Yaw and some 300 employees and guests.

In his speech, Dr Tan said: ‘The media industry has changed dramatically over the past decade. I’m pleased that SPH has been quick to respond to these changes in the industry and has invested in new ventures that give us potential for growth.’

He explained that while print remains SPH’s core business, the company now owns online, mobile, outdoor and broadcast media, as well as non-media businesses like properties, directory searches, and events management.

Hence the need for a new logo to replace the old stylised graphic of the web and rollers of a newspaper printing press.

The new design, for which plans began in 2007, ‘portrays SPH’s initiative in engaging and connecting with all our stakeholders’, and ‘reinforces SPH’s stature as a leading media organisation – confident, authoritative yet approachable’, Dr Tan said.

In his speech, Dr Tan credited President Nathan with being key to the formation of SPH in 1984, through a merger of Singapore News and Publications Limited, Times Publishing Berhad, and the Straits Times Press group of which Mr Nathan was executive chairman.

Mr Nathan himself described his six years at Straits Times Press and in SPH as ‘a unique experience’, prior to which he had been in the civil service with no experience in the newspaper business.

He recounted: ‘The day before I started work, the then prime minister Mr Lee Kuan Yew told me: ‘Nathan, I’m giving you The Straits Times. It has something like 150 years of history. It is like a bowl of china. You break it, I can piece it together again, but it will never be the same. Try not to.’

‘I am proud to say that the bowl that was handed to me and passed on to successor leaders of SPH remains unbroken – in fact it has achieved a better glow with successive years.’

SPH now faces a new media climate, Mr Nathan said, with competition from electronic media and a wider base of more critical readers.

But, he added: ‘I am confident SPH with its 25 years of track record is well equipped to succeed in this new climate.’

In line with its 25th anniversary celebrations, SPH has also revamped its corporate website and SPH- owned shopping mall, Paragon, will be staging free weekend concerts in the next two months and giving out $25,000 in shopping vouchers.

SPH’s CEO Alan Chan said: ‘On this silver anniversary, I wish to assure all our stakeholders that as we celebrate our past 25 years of achievements, we are committed to achieving another 25 years of excellence, even in these challenging times.’

SingTel – BT

SingTel signs deal for $1.08b credit facility

SINGAPORE Telecommunications (SingTel) has secured credit facilities of $1.08 billion to refinance existing facilities and for general working capital.

The agreement for the three-year term loan facility was signed through wholly owned subsidiary SingTel Group Treasury with the Bank of Tokyo-Mitsubishi UFJ, DBS Bank, OCBC, UOB, Calyon, Citibank, and the Hongkong and Shanghai Banking Corporation.

‘The committed facility of $1.08 billion will meet the group’s refinancing requirements for the next financial year ending March 31, 2010,’ said Jeann Low, SingTel’s group chief financial officer.

SingTel generated $2.3 billion in free cash flow after capital expenses for the nine months ended Dec 31, 2008. Net debt as at end- 2008 was $6.6 billion, translating to a net debt gearing ratio of 25.5 per cent.

The ability of Singapore’s largest telco to secure fresh credit to refinance existing facilities at a time when banks around the world are tightening their purse strings is a feat which market analysts attribute to its sound credit rating.

SingTel has an A+ rating from Standard and Poor’s and an Aa2 rating – the third-highest on a scale of 10 – from Moody’s Investors Service.

Its new loan facility comes on top of a separate tranche of $1.07 billion worth of credit facilities obtained last November, also for refinancing existing facilities and for general working capital. These include a $350 million five-year facility with the Bank of Tokyo-Mitsubishi UFJ, DBS Bank and OCBC. The other is a 3.5-year A$725 million (S$763 million) syndicated revolving credit facility signed by its Australian subsidiary Optus with a group of five banks.

While other blue chips such as DBS Group and CapitaLand have resorted to cash calls to raise funds, SingTel has stated it will call for a rights issue only as a last resort.

‘While the credit markets are available, we will continue to get money from credit markets,’ SingTel Singapore CEO Allen Lew told BT previously.

March 2009

Result Annoucement:

  • 13 Apr 09 : SPH HY09 Result


TI = 1699.99 (+26.85)

Stock

Period

DPS ct

Price

Yield

PE

Div Breakdown

SPH

FY08 : Aug

27.0

S$2.53

10.672%

9.37

Interim 8ct ; Final 9ct + 10ct (Special)

SingPost

FY08 : Mar

6.25

S$0.775

8.065%

9.98

Q1 1.25ct ; Q2 1.25ct ; Q3 1.25ct ; Q4 2.5ct

STI ETF

Dec-08

5.0

S$1.72

5.814%

Dec-08 5ct ; Jun-08 6ct

STEng

FY08 : Dec

15.8

S$2.46

6.556%

15.55

Final 4ct + 8.8ct (Special) ; Interim 3ct

Note : STI ETF Replaces SFI in Above Table from March-09

Transport

Stock

Period

DPS ct

Price

Yield

PE

Div Breakdown

SBSTransit

FY08 : Dec

6.6

S$1.60

4.125%

12.13

Interim 3ct ; Final 3.6ct

ComfortDelgro

FY08 : Dec

5.0

S$1.36

3.676%

14.18

Interim 2.6ct ; Final 2.4ct

SMRT

FY08 : Mar

7.75

S$1.53

5.065%

15.45

Interim 1.75ct ; Final 6.0ct

TELCO

Stock

Period

DPS ct

Price

Yield

PE

Div Breakdown

SingTel

FY08 : Mar

12.5

S$2.53

4.941%

10.16

Interim 5.6ct ; Final 6.9ct

M1

FY08 : Dec

13.4

S$1.49

8.993%

8.87

Interim 6.2ct ; Final 7.2ct

StarHub

FY08 : Dec

18.0

S$1.97

9.137%

10.78

Q1 4.5ct ; Q2 4.5ct ; Q3 4.5ct ; Q4 4.5ct

Funds / Infrastructure

Stock

Period

DPS ct

Price

Yield

NAV

Div Breakdown

SPAus

1H : Sep-08

A5.7431

S$0.975

12.352%

A$1.00 (NTA)

1H A5.7431ct

MIIF

2H : Dec-08

3.0

S$0.29

20.690%

$0.98

2H 3.0ct ; 1H 4.25ct

MacCookPSF

Q2 : Dec-08

A1.0 (Gross)

S$0.075

55.920%

A$0.56 (NTA)

Q209 A1.0ct ; Q109 A1.75ct

* SPAus and MacCookPSF DPU in A$. Yield is Calculated Using Latest Exchange Rate (1.0485) fm Yahoo

NOTES :

  • Mkt Price is as on 31-Mar-09
  • ST Engg : Q408 (Dec) – 4ct (Final) + 8.8ct (Special) ; Q208 (Jun) – 3ct
  • ComfortDelgro : Q408 (Dec) – 2.4ct ; Q208 (Jun) – 2.6ct
  • Sing Food : Q408 (Dec) – 3.2ct ; Q208 (Jun) – 1.8ct
  • SBSTransit : Q408 (Dec) – 3.6ct ; Q208 (Jun) – 3ct
  • StarHub : FY09 Div Policy 18ct ie 4.5ct/Q
  • StarHub : Q408 (Dec) – 4.5ct ; Q308 (Sep) – 4.5ct ; Q208 (Jun) – 4.5ct ; Q108 (Mar) – 4.5ct
  • SingPost : Q309 (Dec08) – 1.25ct ; Q209 (Sep08) – 1.25ct ; Q109 (Jun08) – 1.25ct
  • M1 : 2H08 (Dec) – Final 7.2ct ; 1H08 (Jun) – Interim 6.2ct
  • MacCookPSF : Q209 (Dec08) – A1.0ct (Gross ie. before with-holding tax) / Quarter ; Source : SGX
  • SPAus : 1H09 (Sep08) – A5.927ct (before tax) / A5.7431ct (after tax)
  • SingTel : Q209 (Sep08) – Interim 5.6ct
  • SMRT : Q209 (Sep08) – Interim 1.75ct
  • SPH : 2H08 (Aug) – 9ct + 10ct (Special) ; 1H08 (Feb) – 8ct
  • MIIF : 1H08 (Jun) – 4.25ct
  • MacCookPSF : Q408 (Jun08) A2.31ct @ 1.3092 ; Q308 (Mar08) A2.31ct @ 1.2525 ; Q208 (Dec07) A2.31ct @ 1.2485 ; Q108 (Sep07) – A2.625ct (Gross) / A2.31ct (After With-hldg Tax)

STEng – BT

ST Engg unit acquiring two China firms

Eventual 75% stakes in road building equipment firms to cost 162m yuan

SINGAPORE Technologies Engineering is buying majority stakes in two Chinese makers of road construction and maintenance equipment for a total of 162 million yuan (S$36 million).

ST Engineering said yesterday its land systems arm ST Kinetics has signed two agreements to buy a 59 per cent stake in the two firms – Zhenjiang Huachen Huatong Road Machinery Co (HCHT) and Zhenjiang Huatong Aran Machinery Co (HTAR) – from their majority shareholder for 85 million yuan.

The acquisitions are subject to ST Kinetics buying a further 33.11 per cent stake in HCHT and another 16.3 per cent of HTAR from the two companies’ other shareholder, Jiangsu Huatong Machinery Co – which owns the remaining 41 per cent of both firms – for a total of 52 million yuan.

If the acquisitions are approved by Chinese regulators, ST Kinetics will own 92.11 per cent of Huachen Huatong and 75.3 per cent of Huatong Aran.

ST Kinetics plans to inject a further 25 million yuan in cash into HCHT after the deals are completed, while Jiangsu Huatong Machinery will inject land, on which some of the factory buildings of HCHT are situated, into the firm.

The land injection from Jiangsu Huatong Machinery will dilute ST Kinetics’ final stake in HCHT to 75.3 per cent, the same as its stake in HTAR.

Jiangsu Huatong Machinery will own the remaining 24.7 per cent stake in each of the two companies.

The acquisitions ‘are in line with ST Kinetics’ strategy to grow its specialty vehicles business in China and the region’, ST Engineering said in a statement.

ST Kinetics already has two other specialty-vehicle joint ventures in China – one that makes off-road dump trucks and another that produces wheeled excavators. It hopes the latest acquisitions in China will also expand its product development and production capabilities in road construction and maintenance equipment, adding to those of VT LeeBoy, its wholly owned US subsidiary.

‘These acquisitions would allow us to extract value from the relationships between VT LeeBoy in the US and HCHT and HTAR in China to offer our dealers and customers in both countries and beyond, a more comprehensive range of road construction and maintenance equipment,’ said ST Kinetics president Sew Chee Jhuen.

SingPost – CIMB

No catalyst for stock price

• Not entirely immune to recession. Historically SingPost has been delivering fairly stable earnings thanks to its position as the dominant postal service company in Singapore. However management has cautioned that its business has been affected by declining business activities. Segments which are likely to be adversely affected are the business mail and Speedpost. SingPost is hoping to draw more costconscious customers to use direct mail as a form of advertising, to offset the decrease in other mail revenues.

• Decent dividend yield and no short term need for refinancing. SingPost maintains its dividend policy of a minimum payout of 5 cents/share yearly. We have cut our dividend per share assumptions from 6.0 cents/share to 5.5 cents/share, in view of the deteriorating business environment, resulting in a still attractive 7% yield. The group has S$300m worth of unsecured bonds due in 2013 with fixed interest rate of 3.13% per annum.

• Maintain Neutral; lowered DDM-derived target price to S$0.80 from S$0.88. We have fine-tuned our earnings estimates by 1-2% for FY09-11 to account for lower revenue. Although the dividend yield is attractive, we maintain Neutral due to the lack of catalysts. Re-rating catalysts could include regional growth opportunities and a bigger share of the express mail market.