Singapore Press Holdings (SPH)

The newspaper-to-real estate firm has reduced 140 people, or 5% of staff from its media business as the coronavirus pandemic erodes advertising sales, it said in a statement after yesterday’s market close.

SPH’s FY20F profit guidance indicates a significant fall in operating profit, below the $187 million it logged in FY19.

UOB Kay Hian analysts Lucas Teng and John Cheong have maintained their “hold” call on Singapore Press Holdings (SPH) with an unchanged target price of $1.52, which represents a 11.7% upside on the stock.

Four Singaporean blue-chip stocks lost a combined market capitalization of S$863 million on Friday amid record volumes after MSCI Inc. deleted them from its benchmark for the city-state’s largest stocks.

To grow the SPH’s recurring income base and ensure sustainable returns for shareholders, the group focuses on sectors that are defensive and cash-yielding, underpinned by strong fundamentals, secular trends and positive demand-supply dynamics.

SPH notes that the divestment of a non-core business will sharpen its strategic focus on its main business segments which consist of media, retail, retail real estate, purpose-built student accommodation and aged care.

SPH bought a 60% stake in the tech firm behind digital property listings platform SRX for $30 million in cash in 2014. Now, the founders of the company are suing SPH for alleged ‘unlawful means conspiracy’.

SPH CEO and board members have also taken a voluntary 10% reduction in directors’ fees in line with the company’s cost-saving measures. Other senior management staff will see a salary reduction of 5%.

The group says the refurbishment of these assets is to ensure a consistent level of quality across the portfolio.

“We [will] continue to seek cash-yielding assets in defensive sectors to build up our recurring income base,” says Ng Yat Chung, CEO of SPH.