Singapore Press Jumps to Near One-Year High on Strategic Review

(Bloomberg) -- The publisher of Singapore’s flagship daily newspaper The Straits Times saw its shares jump to the highest level in nearly one year, after the company said it is undertaking a strategic review to consider options for its various businesses.

Newspaper-to-real estate group Singapore Press Holdings Ltd. rose as much as 8.7% to its highest since April 3. The stock is up about 38% this year, set for the first annual gain in seven years and its biggest yearly advance in more than two decades.

The objective of the strategic review is to maximize value for shareholders as “SPH remains undervalued” and group’s media business continues to face a challenging environment, the company said in a statement on Tuesday.

SPH can potentially strengthen its focus on property business and possibly restructure its media unit through some kind of M&A activity, said Justin Tang, head of Asian research at United First Partners in Singapore.

Credit Suisse (Singapore) Ltd. is acting as the financial adviser for the review, according to the statement.

The update on review came alongside company’s semi-annual results. Its net income for the first half rose 26% from the same period last year to S$97.9 million ($72.7 million).

CGS-CIMB’s Analyst Kar Mei Eing upgraded the stock to add from hold saying company’s first half’s core net profit exceeded consensus estimates and the stock is undervalued.

“Shareholders’ value unlocking is on the cards,” she wrote in a note, raising her target price for the stock to S$2.09 from S$1.31.

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