SPH

SPH: UBS maintains its SELL rating on SPH and has a TP of $4.08. UBS believe that the structural difficulties of the core publishing business are not priced in. For the upcoming Q3 results on 15th July, house think their newspaper ad revenues (50% of total revenues) will remain weak. Using weekly Straits Times page count data as a guide, newspaper ad revenues could be -7% to -11% yoy suggesting downside risk to house and consensus numbers.