On SPH

SINGAPORE (XFN-ASIA) - Singapore Press Holdings Ltd was lower after
its
net profit in the second quarter to February fell 11.9 pct
year-on-year to
84. 56 mln sgd as gains from investment income declined, dealers said.

Total operating revenue, however, improved slightly to 241.72 mln
sgd
from 236.85 mln in the year earlier term, supported by higher
newspaper
revenue and increased rental income.

At 2.52 pm, SPH was down 0.12 sgd or 2.66 pct at 4.40, off a low
of
4.34, with 14.07 mln shares traded.

The Straits Times index was down 0.62 points or 0.02 pct at
2,545.63.


Despite the lacklustre results, analysts are still positive on
SPH.

Cititgroup said it is keeping its "buy" rating on SPH with fair
value
of 5.62 sgd.

"We see the group as a laggard reflation play with attractive
valuations and supported by a yield of 6 pct," Citigroup said in a
note to
clients.

OCBC Securities said it is also keeping its "buy" rating on SPH
with
fair value of 5.15 sgd per share.

"Earnings growth this year is well supported by healthy economic
growth and robust consumer spending. With first half to Feb 2006
earnings
coming in at 183 mln sgd, our full year (to August 2006) earnings
forecast
of 387 mln sgd should remain on track," it said.

"While the windfall from non-core asset disposals may take some
time
to materialize, SPH remains an attractive yield play with estimated
net
dividend yields of 6 pct," it added.

SPH has identified the Paragon shopping mall on Orchard Road as a
non-core asset that it could divest but it remains reticent about the
timeframe.

Merrill Lynch said it also keeping its "buy" rating and fair
value of
4. 90 sgd for SPH.

"While SPH's near-term share price may be volatile given the
slight
disappointment on its display ad growth trend, we maintain our belief
that
a broader ad market recovery, supported by improved consumption
spending,
would benefit retail, property and finance sectors, as well as SPH in
coming months, " Merrill said.

CIMB-Research said it is also keeping its "outperform" rating for
SPH
with fair value of 5.40 sgd, while Kim Eng Securities rates the stock
a
"buy" with a price target of 5.20 sgd.

But DBS Equity Research was not as optimistic as the others,
rating
SPH a "hold" with fair value of 4.42 sgd from 4.44.

"The results reaffirmed our view that earnings growth for SPH's
core
business will remain lackluster," DBS said.

(1 usd = 1.61 sgd)