SPH – Dividend Projection

Data for EPS, DPS and Payout Ratio

 

EPS (ct)

DPS (ct)

Payout Ratio

 

Q1

Q2

Q3

Q4

Total

1H

2H

Total

 

FY10

9

?

     

?

     

FY09

5

5

8

8

26

7

18

25

96.2%

FY08

7

6

8

6

27

8

19

27

100.0%

FY07

7

7

10

8

32

7

19

26

81.3%

FY06

6

5

11

5

27

7

17

24

88.9%

Note : FY is End-Aug

Observation

– 1H DPS is 7ct or 8ct for the past 4 years

– Q110 EPS is the highest for the past 5 years

 

Projection

– Q210 EPS is not expected to differ too much from Q110 EPS (likely 8-10ct)

= Revenue continues to be recognized for Sky@Eleven

= Business condition continues to improve as our economy recovers (double dip nowhere in sight)

Projected DPS for 1H10 to be at least 8ct with a very high chance of an even higher payout

 

Caution

– Share price had gone up in tandem with market from a low of ~ $2.80

– At $3.80 and using FY09 results, PE = 14.62 and Yield = 6.579%

– EPS to drop once revenue ceases from Sky@Eleven

– Fear due to SPH high bid for Clementi Mall may return 😉

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