Takeaway and Reflections on SPH after the AGM.

There is only coffee, tea or plain water at the AGM.

Issues and questions brought up during the meeting ibclude:

• The down trend of the media and news publishing businness caused by disruption in digital world
• The drastic drop in share prices to around $2.75 at the time of the meeting.
• The drop in investment incomes and asset prices of the Group.

Refection

• News e.g SPH like transport e.g SMRT are essential necessity in Singapore and are naturally majority owned by Govt link entities. Hence the BOD are essentially professional people with track records in Govt or Large conglomerates. Therefore its main objectives is not to make lots of money but to manage and control the news/information in the country. But they will still make sure that it is sustainable and gives a reasonable returns to share holders. Most retail shareholders are retirees depending on the dividends for their pocket moneys. Substantial share holders are also  mostly GLC whose investment returns  and investment assets are also link to the fortune of SPH. 
• So SPH should just ensure that the publishing/ media  is maintained and keeps up with the digital / disruption that is currently taking place. Accept that the magrgin in this industry is going to be slim. Instead concentrate on putting more resources and growing other promising areas for income and growth. (The law of dominshing returns is happening to the publishing business ; whilse areas like property development /owning and investment holding are showing increasing returns to investmnet put in).
• In this area; SPH LBY has pointed out that It is awarded and developing a mixed commercial/residencial project at Woodleigh next to the MRT station. This is a move by SPH in the right direction.
• Another development to broaden its revenue stream and profitability is SPH investment in Orange Valley Nursing Homes. Generally it goes on well with the shareholders present.
• SPH should also looks into the return of investment assets accumulate through the years and actively manage them. A special investment committee should actively manage these investment. It was said during the AGM that earnings from investment and fair value of investment holding has decrease due to the sharp drop in share prices  and DPU of Starhub and M1 where SPH has substantial holdings. Perhaps SPH should also highlight its investment portfolio and actively manged these instead of just being sleeping partners. I believe this might not happen at all as the BOD are put there because of their track records at other Big entities and would not like to shake the boat.