Singapore Post - OCBC Investment 2017-11-15: Results In Line; Broad Themes Of Strategic Review Revealed

Singapore Post - OCBC Investment 2017-11-15: Results In Line; Broad Themes Of Strategic Review Revealed SINGAPORE POST LIMITED S08.SI

Singapore Post - Results In Line; Broad Themes Of Strategic Review Revealed

  • Singapore Post (SingPost) registered a 10.2% YoY rise in revenue to S$354.7m but saw a 9.5% fall in net profit to S$28.5m in 2QFY18, such that 1HFY18 net profit accounted for 49% of our full year estimates, in line with expectations. 
  • Underlying net profit rose 1.9% YoY to S$27.6m in the quarter, and was up 2.4% QoQ. 
  • In terms of operating profit, postal was still the main contributor at S$35.1m in 2QFY18, followed by S$1.1m from property & others. Logistics saw a S$4.2m operating loss while eCommerce had a S$2.9m loss as well. 
  • The group has mentioned a few broad themes for its strategic review, including “winning in the home market”, “delivering full value from overseas investments”, “igniting future growth engines” and “driving cost leadership”. 
  • Pending more details from an analyst briefing, we maintain our HOLD but put our fair value estimate of S$1.22 under review.


See the press release statement and result presentation slides @ Singapore Post Company Announcements 




Low Pei Han OCBC Investment | http://www.ocbcresearch.com/ 2017-11-15
OCBC Investment SGX Stock Analyst Report HOLD Maintain HOLD 1.220 Same 1.220



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