Singapore Post

[iam802]

Despite the 'bullish' market, SingPost is still exhibiting bearish signs.

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Screen Shot 2012-02-01 at 11.18.16 PM.png

[kennynah]

so...what does Singpost do these days?

sell stamps, pawn broker, parcel delivery, collect payments for govt agencies, what else?

how they make money?

[winston]

not vested

Singapore Post said on Friday underlying net profit, excluding one-off items, for its fourth quarter fell 23 percent to S$26.8 million from a year earlier, hurt by a slower economy and higher cost pressures.


Source: Reuters

[winston]

not vested

SingPost: Property spin-off a bonus; buy for defensiveness

The buoyant mood in Singapore’s property sector means that this could be an opportune time for SingPost to spin off some of its assets; it may even receive an offer that is hard to resist.

The group has about 61 post offices and we estimate that about 16 or so are potentially saleable. However, the jewel in its book is the Singapore Post Centre (SPC).

We estimate that the SPC is worth S$765m based on its current mix of industrial, office and retail use, but the value may increase to about S$1.56b if the building is converted to full commercial use.

However, putting market sentiment aside, the group may not be in a rush to unlock value as it is currently cash-rich. Hence we regard a spin-off as a bonus; and investors should focus on more fundamental factors such as the company’s defensive nature and consistent dividends.

Maintain BUY with S$1.14 fair value estimate.

Source: OCBC

[winston]

vested

Singapore Post could spin off assets - OCBC

With property listings gathering pace in Singapore, it could be an opportune time for Singapore Post to spin off some of its post office assets, OCBC Investment Research said.

Singapore Post has a property portfolio, consisting of 16 potentially saleable post offices, that may bring in substantial cash when unlocked, OCBC said. It has a 'buy' rating and target price of S$1.14 on the company.

Shares of Singapore Post were flat at S$1.06 and have gained 13.4 percent so far this year, compared to the FT ST Industrials Index's 17.7 percent rise.

The brokerage added that its crown jewel, Singapore Post Centre, currently used for industrial office and retail purposes, is worth S$756 million, but could increase to about S$1.56 billion if it is converted to full commercial use.

"With current high property prices in Singapore, an increasing number of companies have listed their property assets due to favourable valuations," said OCBC.

Singapore has seen several initial public offerings of property assets, including Ascendas Hospitality Trust and Far East Hospitality Trust's $575 million IPO.

http://www.reuters.com/article/2012/08/ ... WS20120824

[winston]

vested

Presentation Slides - UBS ASEAN Conference 2012

http://info.sgx.com/webcoranncatth.nsf/ ... penelement

[winston]

vested


Asset divestment is unlikely.

The post offices island-wide are precious assets. However, our understanding is that SingPost does not
have an incentive to monetise those assets anytime soon given its substantial net cash balance of SGD161.4m.


Downside protected by dividends.

SingPost has committed to paying a minimum dividend of 5 cents/share p.a.. However, we believe the group’s operating cash flow generation and recent fund raising can help maintain its dividend track record of 6.25 cents/share, which would support the share price at current level.

http://www.remisiers.org/cms_images/res ... 409121.pdf

[winston]

vested

SingPost: Not just a "dividend" stock

The steady climb of Singapore Post’s (SingPost) stock has continued since the start of the year when we upgraded the stock to BUY.

Cautiously improving market sentiment and the flood of liquidity searching for safe havens with respectable yields has supported performance, along with greater expectations of further growth opportunities in SingPost after the issuance of perpetual capital securities in Feb.

Though spectacular gains are unlikely to be enjoyed by investors in the stock, SingPost’s total return has been attractive since 2010 in an uncertain environment.

The group has launched new initiatives over the years and diversified into other business areas, but the next leg of growth is heavily dependent on management’s astute use of the group’s cash pile.

We update our valuation assumptions (lower cost of equity: 6.49%, terminal growth unchanged: 1.5%), and our DDM-derived fair value estimate rises from S$1.14 to S$1.20. Maintain BUY.


Source: OCBC

[winston]

vested

2Q, 2012

Rev: +9%
Profit: -0.3%

http://info.sgx.com/webcoranncatth.nsf/ ... penelement

[winston]

vested

Singapore Post: 2QFY13 results in line

Singapore Post (SingPost) reported a set of in-line results with revenue rising 9.1% YoY to S$153.7m and net profit increasing 7.3% to S$32.9m in 2QFY13, such that 1HFY13 net profit accounted for 49.3% and 52.5% of ours and the street’s full year estimates, respectively.

Revenue grew in all three business segments of mail, logistics and retail. Rental and property-related income, however, declined by 7.0%.

As expected, margins are slightly lower; we expect margins to be weighed down by cost pressures and higher revenue contribution from the lower-margin logistics business.

This may be offset by cost management initiatives undertaken by SingPost. In line with its usual practice, the group has declared an interim dividend of 1.25 S cents per share for the quarter.

At current price levels, we expect a dividend yield of 5.4% in FY13F.

We currently have a BUY rating on the stock, but put our fair value estimate of S$1.20 under review.


Source: OCBC