SINGAPORE POST LIMITED
S08.SI
Singapore Post - Waiting for details on dividend policy
- Ever since SingPost’s AGM in mid July, the stock has been retreating and has lost about 12.7% of its value ever since.
- In our view, this could be partly due to the group’s official statement that it will be reviewing its dividend policy to ensure there is a clear link to underlying earnings, which we believe is a prudent and responsible move on the company’s part.
- Recall that the group paid out a S$0.07/share dividend for FY15 and FY16; before this, it was paying out S$0.0625/share dividend for about eight years. Should the group continue with its S$0.07/share dividend, this would translate to about a 100% payout ratio for FY17. We await management’s announcement on the dividend policy, while noting Singtel’s payout ratio of 60-75% of underlying net profit.
- Meanwhile, the stock is now trading below Alibaba’s entry price for its first investment tranche (S$1.42 in 2014). Maintain HOLD with S$1.42 fair value estimate.
Low Pei Han
OCBC Investment
|
http://www.ocbcresearch.com/
2016-08-29
OCBC Investment
SGX Stock
Analyst Report
1.420
Same
1.420
