SPH

SPH: 3QFY14 results broadly in line. Net profit slumped 52.2% y/y to $89.6m, while revenue slid 4.7% to $309.7m, as newspaper and magazine sales fell 7.6% to $239.6m. This was partially offset by increases of 1.6% and 23.8% from property revenue and other revenues. Bottom line was further weighed by the absence of a $111.4m fair value gain on investment properties recognized in 3QFY13. Core media business is expected to be weak going forward, plus the property outlook remains bleak. Maybank-KE says downside is capped with 4.8% yield, but the house is not excited by SPH’s earnings growth Latest broker ratings: Maybank-KE maintains Hold with TP of $4.10 CIMB maintains Reduce with TP of $4.09 UOBKH maintains Hold with TP of $4.20 (entry price of $4.00 and below)