What happened to Singapore Press Holdings (SPH)?

Singapore Press Holdings Ltd (SPH) had been a great stock. It was a stable stock with good dividend income. I admire the company and I read The Straits Times daily. Of late, its share prices were on the downward spiral.

Date Share Price ($)
31 Aug 2012 3.97
10 Apr 2013 4.65 (highest)
31 Aug 2013 3.93
31 Aug 2014 4.15
31Aug 2015 3.94
28 Jan 2016 3.50 (lowest)
29 Apr 2016 4.06
31 Aug 2016 3.77

 

Since 29 April 2016 a year ago, SPH share prices were slipping. It was trading at $4.06 then.
Share price at 30 May 2017 was $3.24.
Right now it is trading at $3.20 (31 May 2017, 4.44 pm).

Between 29 Apr 2016 and now, the share price declined 21.2% in a matter of one year!

I bought into the shares at prices above $4.00:

Date Share Price ($)
15 Jul 2008 4.10
7 Dec 2012 4.00
5 Jan 2015 4.18

 

I am watching my shares losing 22% on SPH.

The main reason for such a poor showing was due to the decline in profitability of the business.

The Operating Margin declined from 33.7% in 2012 to 27.1% in 2016. The Return on Shareholders’ Funds (ROE) declined from 15.6% to 7.5% for the same period as above. This was halved!

My idea of a stable media business in SPH was shattered with this kind of performance.

Copyright © 2017, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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