Profitable  online  business  in  Malaysia;  Singapore,  Indonesia  and  Philippines  to catch  up. In  Malaysia,  SPH  is  profiting  from  being  the  current  market  leader  in  online classifieds. In Indonesia and Philippines however, it is in 2ndplace and is still loss making. Management  shared  that  it  sees  potential  for  online  classifieds  business  to  grow. Newswires had indicated that classified site Le Bon Coin's (SPH's partner in online classifieds) business has been growing substantially.  

Dividends - maintaining its stance on high percentage of recurring earnings payout. SPH  did  not  give  specifics  on  how  much  dividend  would  be  paid  in  FY13,  but  however maintained  its  promise  of  a  payout  that  will  equal  to  a  high  percentage  of  recurring earnings. Annual dividends of 24S¢ a share was paid out over the past two years, which amounted to a payout ratio of above 90%. We are forecasting dividends of 24S¢ a share for FY13 as well, which translates to a 5.9% yield.   

REIT  spin-off  on  the  cards, but  not  likely  in  the  near future.  SPH's property segment has  been  performing  well,  with  Paragon  mall  reporting  consistent  rental  reversions.  Both Paragon and Clementi mall are recording 100% occupancy rates and together account for 23% of group PBT. SPH's latest property project Seletar mall is due completion by end 2014. SPH has commented that it will spin off its property segment into a REIT but did not indicate  a  timeframe.  We  believe  this  could  take  place  when  its  property  segment  is operating on a more scalable level.

Source: OSK