SPH

SPH: According to a DB rpt on SPH's Jun adex, the 14% y/y surge to $215m was the largest since Feb 2012. This was driven by a 24% jump in TV adex – a magnitude of increase unseen since 2011. As such, the Jun TV adex was $15m higher than a year ago. Radio adex was also robust, posting a 23% y/y growth while Cinema and Posters grew 36% and 20% respectively, albeit from smaller bases. In comparison, Jun’s Newspaper adex growth was fairly subdued (but stable) at 4%. Overall, print adex was up 5% y/y to $92m. Based on current run-rates, DB estimate SPH booked c.$65m ad revenues in the first month of 4Q13e. Along with the $571m reported 9M13 ad revenues, this would imply YTD advertising revenues are broadly in line with full year forecast of $781m. Management recently highlighted their commitment to re-invest the REIT IPO proceeds into four growth areas – property, magazines, exhibitions and digital. There was also commitment to maintain SPH’s dividend yield. But post the property spin-off, the underlying SPH stock would essentially be a structurally challenged media asset. DB maintain HOLD with TP of $4.09 which reflects anticipation of the special dividend and resulting near-term share price support.