Publishing and property firm Singapore Press Holdings (SPH) reported on Friday an 11.6 percent rise in its second quarter net profit, which was in line with expectations and two brokers raised their target prices for the company.
CIMB Research has increased its target price for SPH to S$4.13 from S$3.90 and kept its neutral rating, citing higher property values and to reflect the acquisition of a land site in northeast of Singapore.
SPH, which has a near monopoly of newspaper publishing in Singapore, said on Friday its net profit rose to S$84.1 million ($67 million) from S$75.4 million a year ago.
Shares of SPH were flat at S$3.89, and have gained 5.4 percent since the start of the year.
Cost pressures receded in the second quarter, due to softening newsprint prices and lower variable staff bonuses, CIMB said.
However, it prefers real estate investment trusts such as CapitaMall Trust for their retail exposure and stronger growth potential.
OCBC Investment Research also raised its target price for SPH to S$4.05 from S$3.99, citing expectations of stronger rental income from its new Clementi shopping mall.
"We continue to view SPH favorably as it continues to ramp up on its retail mall strategy, which would constitute a stable counterweight to its print business going forward," said OCBC in a report.
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0919 (0119 GMT)
(Reporting by Charmian Kok in Singapore; firstname.lastname@example.org)