SPH

SPH: Announced 2Q12 results which were generally in-line. Rev at $302.8m, +4% yoy and -10% qoq, while net profit at $75.4m, +12% yoy and -14% qoq. 2Q12 operational trends were broadly in-line, with rev gains driven by rental income while ad rev growth was muted. The slight positive surprises were better than expected margins and the 7c interim div

Rev supported by robust rental gains driven by a 21% surge in rental income to S$48m (boosted by Clementi Mall). The 1H12 implied average rental rate at Clementi Mall was $15.6 psf, while 100% leased Paragon continued to benefit from rental reversions. Elsewhere, ad revenues +1% YoY to $178m, circulation rev -1% YoY to $49.5m and other rev +7% YoY.

Mgt gave few additional details on the Sengkang commercial site, with development expected to be completed within 4 yrs. Mgt was upbeat about the sector’s outlook and do not rule out the possibility of further property acquisitions within the near-term.

Ratings as follow:
CIMB maintains Neutral with $4.13 TP
Deutsche maintains Hold with $4.12 TP
JP Morgan maintains Hold with $3.80 TP
UOB Kay Hian maintains buy with $4.60 TP