Singapore Post

[ehchang]

I just wonder if anyone has done a comparison between Sing Post and SPH? If you have $4K, will you buy 1 lot of SPH or 4 lots of Sing Post?

Appreciate views from other on this.
Currently vested in Sing Post only.
Have a good day!

Hi Rontan

if there is no other choice, i will choose sph over singpost. because i think sph has more differentiating asset to make use of. eg contents, media. singpost has only a delivery network.

[la papillion]

Hi ehchang,

Can enlighten me on what is meant by differentiating assets? Singpost's revenue comes from Mail, logistics, retail and others (property). Perhaps I can put in more detail:


1. Mail - includes domestic, international, hybrid, philatelic - 77.2% of total revenue and 80.7% of operating profit. 61% of the mail revenue comes from domestic mail. It is thus impt to see how the liberalisation of the postal system in singapore play out. That being said, Singpost had prepared for them long long time ago since the liberalisation is first announced.

2. Logistics - includes speedpost, warehousing and distribution, vpost - 14.4% of total revenue and 6% of operating profit. Speedpost accounts for 87.3% of revenue from logistic segment. I have a feeling this is one of the growth engines of singpost.

3. Retail - includes agency, financial services and vpost (bill payment etc) - 8.4% total revenue and 5.7% operating profit. Singpost spent lots of effort to rev up this segment, tying up with prudential for funds and insurance, going into pawn shop services, tying with with GE for ezcash unsecured lending and James too.

The other 7.6% of operating profit comes from property rental income.

[iam802]

is the pawn shop services still around?

[la papillion]

is the pawn shop services still around?

Yes, it is. It's not called pawn shop, it's under a nicer name "speedcash"

Look here: http://www.singpost.com.sg/speedcash/index.htm

They charge an interest rate of 1.5% of the money they lent you after pledging your items. After a period of 6 mths, if you still didn't claim back, they will sell the pledge items to reclaim the money or put it in auction for bigger ticket items. Very good business (for them) - low risk.

[iam802]

No wonder I did not noticed it before. Thought it died a natural death.

I always lump it together with all those services from GE.

Thanks

[kennynah]

is the pawn shop services still around?

Yes, it is. It's not called pawn shop, it's under a nicer name "speedcash"

Look here: http://www.singpost.com.sg/speedcash/index.htm

They charge an interest rate of 1.5% of the money they lent you after pledging your items. After a period of 6 mths, if you still didn't claim back, they will sell the pledge items to reclaim the money or put it in auction for bigger ticket items. Very good business (for them) - low risk.

lapap : so, suppose i bring along a TV remote controller, they would accept this item?

[la papillion]

Hi K,

Haha, no lah Read this from their faq:

Q4. What valuables are accepted by SpeedCash?

SpeedCash currently accepts gold items of 18 karat and above. Our Valuers will quote a fair value from which we will base the cash loan on. Examples of gold items accepted are gold rings, chains and bracelets.

Currently, I think only NKF toilet taps are acceptable for exchange for cash in speedcash Unless your remote control is also....

[ehchang]

Hi ehchang,

Can enlighten me on what is meant by differentiating assets? Singpost's revenue comes from Mail, logistics, retail and others (property). Perhaps I can put in more detail:

I am sorry. I just plug from the air and type in without much consideration. this term probably doesn't exist. anyway what i was trying to say is asset that differentiate the company from most other companies.

you see, singpost make use of their network to delivery advertisement, money, oversea purchase, financial product, ... and more. but i think sph can do more with their content, media. for example, they can .......... ermm.... can't think of any at the moment. hope people at sph can. that's why i choose sph over singpost because there is more potential for them to come up with something more solid.

please note that what i posted is only my opinion. the fact could be another story.

[kennynah]

i duno man.....

sph and singpost... they are 2 almost dissimilar businesses...one is a news media and the other a delivery service by and large (that has also become a gold pawnshop).

i would be hesitant to derive any comparisons by their financial statements...to do so, is like comparing Breadtalk and SIA....

just look at the charts !!! hahahaha

[la papillion]

Hi ehchang,

Haha, no problem, i know it's your personal opinions - so is the postings made here from anyone else Hmm, seems like you're not too sure why you like SPH over singpost too.

If you ask me, I think both used to have monopoly over their business. However, after the postal liberalisation for singpost, that sort of took the cream of the cake. Singpost isn't going to cripple (actually, not sure yet - have to see what MDA announces towards the end of the year to see if it can deal a death blow to singpost) since they are already diversifying their business ever since the postal liberalisation is announced much much earlier. That sort of regulation rulings weaken the monopoly strength of singpost.

For SPH, first of all, I'm not familiar with their business. But from what i gather, it seems like their business has more monopoly in Singpost. Business wise is more cyclical, unlike singpost, and is more tied to the general economic situation in singapore. That's about all I know about SPH.

Going to do more study on Singpost. Vested btw.