Singapore Post - OCBC Investment 2016-08-29: Waiting for details on dividend policy

Singapore Post - OCBC Investment 2016-08-29: Waiting for details on dividend policy 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 HOLD Maintain HOLD 1.420 Same 1.420


Advertisement



MOST TALKED ABOUT STOCKS / REITS OF THE WEEK



loading.......



ANALYSTS SAY


loading.......