SPH

SPH: OCBC maintain BUY with an unchanged fair value estimate of $4.05. Note that in face of an increasingly uncertain macro environment; expect SPH retail mall landlord business to provide a stable counterweight to its core print business which is expected to face pressure from dipping ad demand. The retail business, comprising of Paragon and Clementi Mall, contributed S$47.9m of profits before tax in 1H12, making up a respectable 22%. House expect commercial development at Sengkang to complete by 2016, which would add another suburban mall similar to the size of Clementi Mall into SPH’s retail portfolio. Moreover, with group investible funds currently at S$0.9b as of end Mar 2012, believe there is sufficient capacity for SPH to allocate additional capital into its retail strategy ahead.