Broker's take: UOB Kay Hian raises SPH target price, cites potential unlocking of value from assets

UOB Kay Hian on Thursday raised its target price on Singapore Press Holdings (SPH) to S$1.52 from S$1.50 previously, citing that the media and property group looks set to "unlock value" from its non-core assets, including its property at Genting Lane.

The brokerage has maintained its "hold" rating on SPH, which publishes The Business Times. 

As at 11.34am on Thursday, SPH shares were trading at S$1.55, up S$0.05 or 3.3 per cent. Some 10.3 million shares changed hands, making it the second most heavily traded counter by volume among the index stocks, just behind Singapore Airlines. 

"We observe that the group had incorporated a new subsidiary Times Genting, and owns a sizeable industrial property at Genting Lane, notably with the same namesake. In our view, a consolidation of operations could provide the potential to further unlock value from its assets," wrote UOB Kay Hian analysts Lucas Teng and John Cheong in a research note. 

They also noted that SPH has divested a 5.29 per cent stake in AXA Tower for about S$33.2 million with a "small divestment gain". 

"In addition to the divestment of convenience store chain Buzz, we note that the group is continuing to review its non-core businesses and investments as part of its disciplined capital-allocation approach," the analysts added. 

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Last month, SPH announced that it will be selling its wholly-owned subsidiary Buzz Shop to Thai-Pore Enterprise for an undisclosed sum.