The Motley Fool

2 Shares to Watch This Week

Stocks have seen renewed interest this year as market participants anticipate no further interest rate hikes this year. With that, here are two stocks in the limelight this week.

Singapore Press Holdings Limited (SGX: T39)

The publisher of the Straits Times kicks off earnings season this week, releasing its earnings update for the three months ended 31 May 2019 on Friday, 12 July. 

In the first half ended 28 February 2019, operating revenue fell 3%, with net profit to shareholders seeing a sharp drop of 14.7%.

The dominant local newspaper publisher has been hit by online disruption. While digital revenue increased by 13.1% in the first half, newspaper print ad revenue declined by 10.5%. Classified and display ad fell 6.6% and 19.6% respectively.

To stabilise revenue and earnings, the media giant has shifted its focus to property.

In June, SPH announced the proposed acquisition of interest Prime US REIT, a US commercial real estate investment trust that has proposed an initial public offering in Singapore. This will add to SPH’s current portfolio of investment properties, which also includes a majority interest in SPH REIT (SGX: SK6U). SPH REIT itself will be releasing its quarterly update on Thursday, 11 July.

Investors should keep an eye out on how Singapore Press Holdings’ media segment has performed, and more importantly, the progress the group has made in its digital efforts.

Health Management International Ltd (SGX: 588)

The healthcare company, which operates two hospitals in Malaysia and one specialist centre in Singapore, announced a joint bid with PanAsia Health Limited to privatise the company for approximately S$611 million. Pan Asia Health Limited is a special purpose vehicle controlled by EQT Mid Market Asia III GP B.V.

Under the scheme, HMI shareholders will be entitled to receive S$0.73 in cash or one new ordinary share at the same price in PanAsia Health. The offer price represents a 29.7% premium over the six-month volume weighted average price and 14.1% over the last trading day price.

To be successful, the scheme of arrangement will require approval from a majority of HMI shareholders, who hold at least 75% of the company. PanAsia Health has received irrevocable undertakings from certain HMI shareholders representing 61.8% of total HMI shares to vote in favour of the scheme. The stock began trading on Monday up 8.3%, at S$0.715, in anticipation that the scheme will pass.

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The information provided is for general information purposes only and is not intended to be personalized investment or financial advice. Motley Fool Singapore contributor Jeremy Chia does not own shares in any of the companies mentioned.