In line; maintain Neutral. 1Q11 net profit of S$102.3m met our forecast and consensus’s, forming 25% of our FY11 estimate. Net profit was lower by 29% yoy due to the absence of property development profit from Sky@eleven. Stripping out S$50.3m of development profit in 1Q10, 1Q11 net profit would have climbed 8.4% yoy on stronger print ad and rental profit. We keep our earnings estimates and sum-of-the-parts target price of S$4.51. Maintain Neutral in view of rising newsprint costs and risks of lower property-ad demand following recent tightening in the property market. SPH should, however, be supported by dividend yields of 6-7% expected for FY11-13. Re-rating catalysts could come from higher-than-expected print-ad revenue and accretive property acquisitions, in our view.
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