SPH

SPH: SPH cites that its dividend policy will be maintains post Reit IPO. DB believes the proposed special dividend will provide near-term share price support, maintains its HOLD rating with TP of $4.09 based on SOTP. Proceeds of $700m from Reit IPO will be used in property, magazines, exhibitions and digital. For property, SPH will focus on retail assets, with potential acquisitions up to $500-600m in size. Going forward in a 5-year horizon, SPH will remain as a media-focused business. SPH has the intention to develop both the print and online advertising platforms, but conceded it was relatively difficult to monetize digital opportunities. DB believe management continues to seek opportunistic acquisition of profitable online businesses but may be limiting further development of in-house capabilities.