Brokers' Take

Singapore Press Holdings, Mar 2 closing : $18.60

UOB Kay Hian, March 2

OUR in-house page count of The Straits Times indicates 19 per cent year-on-year growth (plus 3 per cent month-on-month) in February - a sharp rebound from a 7 per cent contraction (minus 8 per cent month-on-month) in January.

Monthly figures were distorted by an early Chinese New Year, which started on Jan 22, 2004 versus Feb 1, 2003 and Feb 12, 2002. Taking January and February together, our page counts indicate 4 per cent year-on-year growth. Compared with the 2 per cent year-on-year growth in December 2003, advertising revenue is picking up.

The most encouraging sign is our job ad page count. This registered 33 per cent year-on-year growth in February. And taking January and February together, our job ad page counts indicate 16 per cent year-on-year growth.

The past two months showed a a rising trend in the number of job ad pages in The Straits Times. Given that ST commands half of the print advertising revenue market, it's a good indicator of the job market.

We are maintaining our advertising revenue growth projections for SPH at 6 per cent for FY04 and 12 per cent for FY05. Advertising revenue has turned the corner and is poised for an upturn.
Singapore's job market is also showing signs of a good pick-up and we are hopeful this will eventually lead to higher consumer spending.

Our share price target for SPH remains at $24 by end-2004. Maintain BUY.

Compiled by VEN SREENIVASAN