Last close As at 06/08/2026
SGD0.34
▲ −0.01 (−1.47%)
Market capitalisation
SGD755m
Research: Industrials
At the AGM management discussed the outcome of Singapore Post’s strategic review and the recently announced strategic review into value creation options relating to the Australian logistics business. In our view, expansion in the Australian logistics market offers long-term growth and that historical issues surrounding structural weakness in postal volumes may be resolved by growth in replacement volumes from e-commerce. We continue to believe there is more than 60% upside in the share price.
Singapore Post |
AGM update confirms review intentions |
AGM update |
General Industrials |
25 July 2024 |
Share price performance
Business description
Analyst
Singapore Post is a research client of Edison Investment Research Limited |
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At the AGM management discussed the outcome of Singapore Post’s strategic review and the recently announced strategic review into value creation options relating to the Australian logistics business. In our view, expansion in the Australian logistics market offers long-term growth and that historical issues surrounding structural weakness in postal volumes may be resolved by growth in replacement volumes from e-commerce. We continue to believe there is more than 60% upside in the share price.
Year end |
Revenue (S$m) |
PBT* |
EPS** |
DPS |
P/E |
Yield |
03/23 |
1,872.3 |
75.3 |
0.6 |
0.6 |
70.9 |
1.4 |
03/24 |
1,686.7 |
70.5 |
3.0 |
0.7 |
14.7 |
1.7 |
03/25e |
2,124.9 |
106.1 |
2.7 |
1.3 |
16.3 |
2.9 |
03/26e |
2,198.5 |
125.7 |
3.3 |
1.5 |
13.3 |
3.4 |
Note: *PBT is normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. **EPS is company basis (ie including exceptionals and post distribution to perpetual security holders).
At the 2024 AGM, management provided a recap on the performance of the company in the last full year and reiterated both the outcome of the strategic review, and the rationale behind the strategic review of the Australian business. Furthermore, SingPost had already pre-released shareholders’ questions and the company’s responses to them the week before. There was no new information disclosed save for the outcome of the AGM resolutions, which were all passed by over 99%, bar Resolution 11, which was passed by over 98% of votes cast.
The two key points in the address given by the chairman, were as follows:
Firstly, the group’s strategic review, which was undertaken to try to ensure that the value created by the business was appropriately reflected in the share price of the company, was completed. The board agreed to a number of principles as a result, in particular: 1) define what assets and businesses are core and non-core, 2) divest non-core assets and businesses that are not expected to earn a return ahead of the cost of capital, 3) recycle capital into logistics, 4) optimise the balance sheet, and 5) reset the group’s dividend policy.
Secondly, the address highlighted that in June this year, following the acquisition of Border Express, the Australian logistics business would be the subject of its own strategic review, so that SingPost can fully understand the potential value-creation options open to it. These include further M&A, strategic partnerships, taking external capital and other liquidity options. The board would submit its recommendation for shareholders’ approval in due course.
We continue to value the company on a sum-of-the-parts basis at S$0.72/share, which implies more than 60% upside from the current depressed share price. The strategic review, carried out by Bank of America, was designed to identify operations and assets within the group that are non-core or underperforming and, as such, could become targets for capital recycling. To this end, post review reinvestment may result in a group that is more focused on growth and potentially better able to unlock value, and thus create further upside potential for investors.
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Research: Metals & Mining
Since our last update note on 20 May, Alkane has announced 1) the results of its scoping study on the Boda-Kaiser project, 2) FY24 production of 57,217oz Au at an all-in sustaining cost (AISC) guidance of A$2,150–2,350/oz, 3) an updated five-year mining plan at Tomingley and 4) regional exploration results from the Northern Molong Porphyry Project (NMPP). This note updates our valuation of the company for each of these developments, of which the most important are the results of the Boda-Kaiser scoping study.