I am not going to do a deep review of SPH’s 2nd quarter 2011 earnings. Net profit is down by a lot and they are giving out 7 cents of dividends.
We also see that the Clementi Mall is starting to contribute.
However what I find most intriguing are
- In half a year, staff cost increased 19 mil, materials increased 10 mil, finance cost increased 10 mil, other expenses increased 18 mil. In total that brings almost 58 mil.
- In the absence of Sky Eleven’s contribution, contribution from recurring property only reached 76 mil.
- Half year profit is only 173 mil. If you double that, full year profit will be 340 mil. Even adding Clementi Mall’s contribution it will be at most 380 mil.
- This is drastically below the 400 mil needed to pay out 25-26 cents dividend (6% yield)
I find that there is a possibility that payout might decrease.
I run a free Singapore Dividend Stock Tracker . It contains Singapore’s top dividend stocks both blue chip and high yield stock that are great for high yield investing. Do follow my Dividend Stock Tracker which is updated nightly here.
Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.
Readers also follow Kyith to learn how to plan well for Financial Security and Financial Independence.
Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Insurance Start-up Havend. All opinions on Investment Moats are his own and does not represent the views of Providend.
You can view Kyith's current portfolio here, which uses his Free Google Stock Portfolio Tracker.
His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.
You can read more about Kyith here.
- New 6-Month Singapore T-Bill Yield in Late-April 2024 to Drop to 3.70% (for the Singaporean Savers) - April 18, 2024
- Golden Nuggets from JPMorgan Guide to Retirement 2024. - April 16, 2024
- Be Less Reliant on Banks and Build Stronger Capital Markets by Pushing for Better Shareholder Dividend and Buyback Yield - April 14, 2024
toiletsiao
Saturday 16th of April 2011
I think must wait until at least 4Q2011 to have a good read on sph's "normalised" profits...Sky11's contribution lasted until 3Q2010..i feel it makes the results difficult to read...and hopefully startup costs to clementi mall are charged upfront in 1H2011 for SPH
OT
Friday 15th of April 2011
Hi Drizzt,
Indeed it look not so good for SPH. Slowly wait and see how it progress first.
Thanks for leaving comments in my blog :)
OT
Drizzt
Saturday 16th of April 2011
Hi OT, SPH is a very popular stock, i am still trying to make sense whether is everyone correct about it being a stock that never dies or not.
Cheers.
Phileas Wind
Thursday 14th of April 2011
I agree with your comments, the Q2 results don't look good and there is risk of reducing special dividend at year end
Drizzt
Thursday 14th of April 2011
hi Phileas, thanks for visiting. i read your blog on RSS feeds as well. I was hoping they build up their property rentals to offset the other part of their business. lets see how that develops.