SPH

SPH: CIMB maintains Neutral with $4.08 TP. House note that SPH’s FY13 dividends could fall short of FY12’s 24 cents due to weak ad revenue and the loss of 30% of its property earnings. But one should not be negative on SPH as the S$757m raised from SPH REIT should compensate if management successfully develops new retail malls. House reduce FY13-15 EPS by 2-13% for weaker ad revenues and the 30% fall in property earnings following the injection of two assets into the REIT. SPH remains a Neutral as potential dividend headwinds are balanced by $757m cash proceeds that management is looking to deploy. House SOTP falls due to the payout of the 18c special dividend and a lower value for the core media operations after the EPS cuts.