The research house is in the view that SPH’s recent acquisition of Orange Valley Healthcare (OVH), which was announced earlier this year in April, is unlikely to be an earnings game-changer in the near term.
SINGAPORE (Aug 23): UOB Kay Hian is maintaining its “hold” call on media group Singapore Press Holdings (SPH) with a lower target price of $2.85 compared to $2.90, as well as a recommended entry price of $2.60.
This is based on the valuation benchmark for SPH’s healthcare business at 20 times of its 1-year forward price-to-book ratio, with every $1 million in additional earnings for SPH to impact the group’s valuation by 1.5 cents.
