Last close As at 05/08/2026
SGD0.34
▲ −0.01 (−1.47%)
Market capitalisation
SGD766m
Research: Industrials
Singapore Post’s H1 trading was ‘resilient’, despite challenging market conditions across several of its businesses. Revenue increased by 20%, mainly due to the inclusion of the March 2024 acquisition of Border Express. This fed through to operating profit growth, which was up more than 60%. Divisional profit performance was mixed due to a number of issues but benefit was generated from internal initiatives and the postal rate increase introduced last year. However, there was no new news of the ongoing review of the Australian business.
Singapore Post |
Results boosted by M&A and reduced losses |
H125 results |
Industrials |
7 November 2024 |
Share price performance
Business description
Analyst
Singapore Post is a research client of Edison Investment Research Limited |
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Singapore Post’s H1 trading was ‘resilient’, despite challenging market conditions across several of its businesses. Revenue increased by 20%, mainly due to the inclusion of the March 2024 acquisition of Border Express. This fed through to operating profit growth, which was up more than 60%. Divisional profit performance was mixed due to a number of issues but benefit was generated from internal initiatives and the postal rate increase introduced last year. However, there was no new news of the ongoing review of the Australian business.
Year end |
Revenue (S$m) |
PBT* |
EPS** |
DPS |
P/E |
Yield |
03/23 |
1,872.3 |
75.3 |
0.6 |
0.6 |
83.8 |
1.2 |
03/24 |
1,686.7 |
70.5 |
3.0 |
0.7 |
17.4 |
1.4 |
03/25e |
2,124.9 |
106.1 |
2.7 |
1.3 |
19.3 |
2.4 |
03/26e |
2,198.5 |
125.7 |
3.3 |
1.5 |
15.8 |
2.9 |
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).
Singapore Post’s trading was ‘resilient’ in H125 and generated group revenue of S$992.4m, up 20% on last year, boosted primarily by the inclusion of trading at Border Express (purchased in March 2024). Operating profit increased by 62.9% to S$51.2m, implying that the operating margin increased from 3.8% to 5.2%. This was largely due to the addition of the higher-margin acquired businesses, although there were several moving parts within the figure. Furthermore, the dividend was increased by 89% to 0.34c, representing a 30% payout ratio.
In the Australia business, revenue increased by 44.1% to S$574.9m, which was mainly due to the M&A mentioned above. The organic performance was muted, with both the B2B and B2C sectors facing economic headwinds and reduced volumes. Operating profit increased by 30.2% to S$30.4m.
The International business consists of the international cross-border delivery and warehousing business and the freight forwarding business. International revenue declined by 26.8% to S$117.9m due to a difficult business environment but, after operational efficiency improvements, operating profit increased from S$3.0m to S$4.3m. In the Freight Forwarding division, revenue increased by 9.7% to S$148.7m, while operating profit declined by 29.2% to S$8.4m due to significant cost increases, specifically higher sea freight rates.
In the Singapore division, the Postal and Logistics business grew revenue by 12.4% to S$129.6m due to an increase in postal rate in October 2023, which was offset by structural declines in letter mail volume. The post office network remains unprofitable and there were additional investments made to upgrade technology and legacy systems. That said, losses were much reduced, from S$14.7m to S$0.9m. Singapore Post is working with the authorities on an operating model that will ensure the long-term viability of the postal service. The Property division increased revenue by 13.2% to S$43.0m and operating profit by 11.7% to S$23.9m due to higher rental income and an occupancy rate that increased from 96.2% at the end of March, to 98.2% by the end of September.
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Research: Industrials
Information Services Corporation (ISC) delivered another quarter of robust growth in Q324, with revenue advancing 12% y-o-y to C$60.9m and adjusted EBITDA rising 18% to C$22.7m. Net income remained relatively flat at C$4.2m (translating to C$0.23 basic and diluted EPS) as ISC’s strong operational performance was offset by increases in share-based compensation expenses, increased investment in project delivery within its Technology Solutions segment and elevated amortisation costs related to the Master Service Agreement (MSA) extension. Management reiterated its revenue (C$240–250m) and adjusted EBITDA (C$83–91m) guidance for FY24, with our estimates remaining aligned at C$242m and C$85.5m, respectively.