Further, the research house notes that SPH’s latest set of 3Q18 results indicated higher-than-expected costs the media segment due to the continued decline of advertising revenue. Based on the cautious GDP growth outlook as of late due to ongoing trade tensions between the US and China, Singapore’s two largest export markets, it also expects ad spend to be muted going forward.
SINGAPORE (July 12): DBS Vickers Securities is maintaining its “hold” call on Singapore Press Holdings (SPH) with a lower target price of $2.58 compared to $2.60 previously, after lowering FY19-20F earnings by 21-35% on slower residential property sales from the group’s Bidadari development, The Woodleigh Residences.
This comes after recent news of property cooling measures, which has led DBS to believe property sales and recognition The Woodleigh Residences will now be backend-loaded towards FY21 on the back of cooling demand.
