Singapore Post

[winston]

not vested

SingPost buys Lock+Store for $37 million

As part of its strategy to grow its self-storage business, postal service provider Singapore Post (SingPost) is acquiring General Storage Company from Asia Pacific Storage Company for $37 million.

General Storage, which operates a self-storage business under the Lock+Store brand, has facilities in Tanjong Pagar and Chai Chee.

The acquisition will expand SingPost's existing self-storage business, Self Storage Solutions (S3), which offers warehousing, fulfilment, delivery and distribution services.

SingPost expects the acquisition to allow it to serve individual customers and small-and-medium enterprises better.


Source: AmFraser

[winston]

not vested

Post buys stake in freight-forwarding firm for $60m By Jasmine Ng

SingPost said on Friday that it will buy a 62.5 per cent stake in Singapore-based freight-forwarding company Famous Holdings (FH) for S$60 million.

Both companies have agreed on an option to transact the remaining 37.5 per cent stake at the end of 2015, at a price to be determined based on an agreed formula.

"As part of our strategy to grow the logistics business, we are strengthening our capabilities to provide fully integrated logistics solutions to our customers," said SingPost CEO Wolfgang Baier.

"FH's freight-forwarding capabilities complement our e-commerce logistics capabilities in regional fulfilment and warehousing, as well as our postal & parcel delivery networks," he added.


Source: Business Times

http://www.businesstimes.com.sg/breakin ... m-20130118

[winston]

not vested

3Q 2013

- Revenue +10%
- Expenses +14%
- Net profit -1%
- Mail business +12%
- Logistic +9%
- Retail +12%

http://info.sgx.com/webcorannc.nsf/Annou...endocument

[winston]

not vested

Singpost’s 3Q13 underlying profit of S$39.8 (+2% y-o-y, 22% q-o-q) and interim DPS of 1.25 Scts were in line.

The group has acquired two more companies for S$97m, taking total amount spent on acquisitions to S$179m over the last two years.

The stock is not cheap at 17x PER.

Maintain HOLD with revised TP of S$1.14 (Prev S$1.04).

Source: DBS

[winston]

not vested

 Results for Q3 ended Dec ’12 (net profit down 5% although “underlying” profit rose 2.5%) belie what has been quietly happening at Sing Post, specifically in the regional e-commerce space.

 We are not talking about the b2b,b2c or whatever that took the financial world by storm in late 1990s / early 2000, or just before the dot.com crash - recall Singapore Computer’s promised fields of gold which had sent the stock to almost $5. SCS was eventually absorbed by Sing Tel at $1.50 a share.

 Sing Post has been building up the logistics division that has become a vital part of the group, and offsetting the gradual but inexorable decline of its traditional mail business.

 Meanwhile, the asset value story (principally Post Centre in Eunos) is still intact given the significant increase in value of properties in the Paya Lebar / Eunos / Tg Katong.

 With yield of 5.2% (based on sustainable annual 6.25 cents a share) continues to merit a BUY, despite the stock fast approaching the high of $.

Source: Lim & Tan

[winston]

not vested

Singapore Post: Expenses continue to rise

Summary: Singapore Post (SingPost) reported a 25.0% YoY rise in revenue to S$182.5m but saw a 14.6% drop in net profit to S$26.1m in 4Q13, bringing full year net profit to S$136.5m, accounting for about 94% of our full year estimate.

Excluding one-off items such as a S$5.7m write-off of intangible assets, underlying net profit was S$141.0m, which was 2.5% shy of our forecast.

Volume-related and admin expenses continued to rise in the last quarter, such that total operating expenses rose 17.2% QoQ.

EBITDA margin fell from 31.0% in 4QFY12 and 33.4% in 3QFY13 to 25.8% in 4QFY13 as a result.

In line with its usual practice, the group has proposed a final dividend of 2.5 S cents/share, bringing the full year payout to 6.25 S cents.

Pending an analyst briefing later, we maintain our HOLD rating but put our fair value estimate of S$1.23 under review.


Source: OCBC

[winston]

not vested

SINGAPORE POST LTD - The Singapore-based postal and logistics service provider said its net profit fell 14.6 percent to S$26.1 million ($21.15 million) in the fourth quarter.

It attributed the drop to rising costs amid its sixth consecutive quarter of decline in domestic mail volume.


Source: Reuters

[winston]

vested

Singapore Post - Upgrade to BUY with higher TP of S$1.56 as we see significant growth in addition to 4.9%
yield

Singapore Post’s FY13 underlying profit of S$140.9m (+4.1% y-oy) was 3% ahead of our estimates on the back
of better organic and inorganic growth.

FY14 is expected to benefit from full-year contribution of acquired companies.

FY14/15 EPS raised by 14%/19%. Upgrade to BUY with revised TP of S$1.56 (Prev S$ 1.14) as we see significant growth in addition to 4.9% yield. Its strong free cash generation supports dividends.

Source: DBS

[iam802]

The challenge about falling short for a routine 'job' is the backlog will build up very quicky.

If one day of lapse causes 40,000 later delivery, what will one week of late delivery leads to?

In my opinion, the SingPost spokesman should have just highlight that they will step up efforts to improve their service.

I guess, it is hard to do so when the mail delivery business is hardly growing.

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SINGPOST FINED $10,000 FOR LATE DELIVERY OF 40,000 LETTERS

http://therealsingapore.com/content/sin ... 00-letters

SingPost has been fined $10 000 for lapses which resulted in the late delivery of about 40,000 local letters.

The Infocomm Development Authority (IDA) had imposed stricter penalties for lapses in service standards since July 2012.

This is the first time that SingPost has been fined since the new penalties were imposed.

IDA reported that SingPost is required to deliver local letters by the second working day after posting and this was not done earlier this year in February.

A SingPost spokesman explained that it had only fallen short by a “fraction” in one of the seven quality standards it is required to maintain. However, a detailed explanation of the lapse that caused the delivery error was not provided.

This is not the first time a mailing blunder was reported under SingPost.

In April, TREmeritus reported that an owner of a woman’s fashion boutique in Far East Plaza had not received a 30kg parcel worth about $5000. The parcel was misdelivered to a competitor’s shop on a different floor and some of the stock had been sold by the time the mistake was discovered.

[iam802]

A dividend yield stock?

Resistance at 1.365, 1.31 and 1.266

Unless they also do a NOL and start selling buildings.

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