Brokers' Take

Singapore Press Holdings, April 1 close : $19.00

02 April 2004
The Business Times

Kim Eng Securities Research, April 1

INTERIM dividend could match that of last year. As operating free cash flow in 1H is likely to be strong even before the recognition of gains from the sale of the Times House site and the stake in Belgacom (completed after 1HFY04), SPH has the capacity to maintain interim DPS at last year's level of 50 cents (inclusive of 30-cent special DPS).

BUY ahead of the release of its interim results as the market may start to focus on its earnings recovery and substantial asset divestment gains. In fact, cash proceeds of $389 million from the sale of Times House and Belgacom will be recognised in 2H which should support a bumper special dividend. Other non-core assets (stakes in M1 and StarHub) that could be divested within FY04 amount to $1.13/share.

Compiled by KENNETH LIM