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Analysis of SPH as a property company
07 May 2021 (599 views)

Singapore Press Holdings (SPH) plans to transfer its media operations into a non-profit entity. After that, it will have no media operations. It will remain largely a property company.

What are its prospects as a property company?

This news report shows the last financial report of SPH:

https://www.businesstimes.com.sg/companies-markets/s232m-fair-value-loss-pushes-sph-into-the-red-for-first-time

SPH reports an net loss of $75.8 million, after taking a writeoff of $232 million in the revaluation of its assets. 

Excluding this writeoff, the net profit (i.e. operating profit less interest and expenses) would be $156 million.

The weighted average number of shares is 1,609 million. The adjusted EPS (earnings per share) would be $0.96.

SPH suffered a small loss of $11.4 million from its media operations. This will be divested.

Here are the key figures:

Adjusted EPS $0.96
Price (as at 7 May 21) $1.60
PE ratio: 16.6
BV per share: $2.38 
Price to BV: 0.67 (i.e. 33% discount to assets)

Here are the comparable figures for property shares and REITS

Ascendas - PER 25.2, P/BV 1.33
Fraser Logistic - PER 19.72 P/BV 1.29
Mapletree Logistic - PER 19.1 P/BV 1.36
Capitaland - PER 12.5, P/BV 0.7
Capitaland ICT - PER 26.31, P/BV 1.10
SPH - PER 16.6, P/BV - 0.67

Note - my calculation for SPH may contain errors. I am not recommending to buy or sell this share at any specific price.

Tan Kin Lian

 


Analysis of SPH as a property company
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Singapore Press Holdings (SPH) plans to transfer its media operations into a non-profit entity. After that, it will have no media operations. It will remain largely a property company.

What are its prospects as a property company?

This news report shows the last financial report of SPH:

https://www.businesstimes.com.sg/companies-markets/s232m-fair-value-loss-pushes-sph-into-the-red-for-first-time

SPH reports an net loss of $75.8 million, after taking a writeoff of $232 million in the revaluation of its assets. 

Excluding this writeoff, the net profit (i.e. operating profit less interest and expenses) would be $156 million.

The weighted average number of shares is 1,609 million. The adjusted EPS (earnings per share) would be $0.96.

SPH suffered a small loss of $11.4 million from its media operations. This will be divested.

Here are the key figures:

Adjusted EPS $0.96
Price (as at 7 May 21) $1.60
PE ratio: 16.6
BV per share: $2.38 
Price to BV: 0.67 (i.e. 33% discount to assets)

Here are the comparable figures for property shares and REITS

Ascendas - PER 25.2, P/BV 1.33
Fraser Logistic - PER 19.72 P/BV 1.29
Mapletree Logistic - PER 19.1 P/BV 1.36
Capitaland - PER 12.5, P/BV 0.7
Capitaland ICT - PER 26.31, P/BV 1.10
SPH - PER 16.6, P/BV - 0.67

Note - my calculation for SPH may contain errors. I am not recommending to buy or sell this share at any specific price.

Tan Kin Lian