SingPost *Official* (SGX: S08)

[SpinFire]

SingPost going to redevelop Singapore Post Centre. Potential increase in rental income, but it'll be several years later.

 

[Shion]

General Announcement:roposed Redevelopment of Singapore Post Centre Retail Mall

Cash Dividend/ Distribution::Mandatory

Financial Statements and Related Announcement::Third Quarter Results

 

[htngwilliam]

My own analysis. Haha! Expect Q3 to clock $245mil and 9m 2014/2015 to hit $680mil. Slowing down growth but I could be wrong. What I decided was days ago, at PE of > 30, I know it can't sustain and I sold.

Wow! My numbers quite close. Haha!

 

[Genesisz]

it's true very hard to catch the exact trend. w the advent of online shopping singpost is indeed a growth stock... but at p/e of 30, that's crazy... 20 I will enter

I am considering this as well and will go in at the right price at the right time.

 

[gbpdem]

was trading some SingPost shares recently and noticed something peculiar

with the recent reduced board lot size trading
i noticed a lot of hits were done in 100 share sizes

i understand the min brokerage fees were reduced to something like $10
for these small size trades
if so, these $10 fees will add up to almost 5%
for these 100 share transaction cost

so why do people still do it
considering the in/out (i.e. breakeven) will be almost 10% ?

do people realise that the actual brokerage costs will be so much higher
%wise for the 100 share trades for low price counters like SingPost ?

or am i missing something ?

 

[Perisher]

was trading some SingPost shares recently and noticed something peculiar

with the recent reduced board lot size trading
i noticed a lot of hits were done in 100 share sizes

i understand the min brokerage fees were reduced to something like $10
for these small size trades
if so, these $10 fees will add up to almost 5%
for these 100 share transaction cost

so why do people still do it
considering the in/out (i.e. breakeven) will be almost 10% ?

do people realise that the actual brokerage costs will be so much higher
%wise for the 100 share trades for low price counters like SingPost ?

or am i missing something ?

I think the answer is SCB. it still counts by % instead of any min.

 

[gbpdem]

I think the answer is SCB. it still counts by % instead of any min.

actually my price was hit by many brokerage firms
not just from SCB ...

 

[htngwilliam]

If I buy 1 lot, I pay $25 per purchase?

If I buy 900 shares, I pay $10 because of the new promo? More worth to buy 900 shares if I am just trying to buy 1 lot?

 

[Perisher]

actually my price was hit by many brokerage firms
not just from SCB ...

Now got many promo mah... Some are offering free trade even. Singpost is $2 now, so 100 shares is $200, they pay $10 in and $10 out, yeah 10% but once singpost chiong past $210, they profit lor... long term play perhaps?

If I buy 1 lot, I pay $25 per purchase?

If I buy 900 shares, I pay $10 because of the new promo? More worth to buy 900 shares if I am just trying to buy 1 lot?

Yes. that's to entice you buy 900 shares, but there is a limit on the share price too, I think it's $5000 for some brokerage... need to check.

 

[Shion]

SingPost forms JV to tap e-commerce market in Indonesia | The Edge Markets

 

[Vincent_G]

If I buy 1 lot, I pay $25 per purchase?

If I buy 900 shares, I pay $10 because of the new promo? More worth to buy 900 shares if I am just trying to buy 1 lot?

Using SCB, you even pay less than that, much less..

 

[Shion]

SingPost forms JV to tap e-commerce market in Indonesia | The Edge Markets

Looks promising.

Indonesia has a much bigger market.

 

[felixleong]

Polaris rose 7.1% to 1.5 cents after the company said its associate, PT Trikomsel Oke Tbk, has formed a joint venture with Singapore Post to provide e-commerce and logistics services in Indonesia.

 

[SpinFire]

Looks like double bottom in place. If can break 2.04, can retest previous high.

 

[steven168z]

Singapore Post - Getting Ahead Of The E-Commerce Curve

Facing an increasingly competitive business environment coupled with higher operating cost pressures, SingPost continues to invest in raising productivity and building its infrastructure steadily. We anticipate the imminent uplift in revenue and earnings from the partnership with Ailbaba and think that the recent weakness in price presents an opportunity to take part in an E-commerce play with long-term upside potential.

Upgrade to BUY. Target price: S$2.27.

WHAT’S NEW
• This note highlights the following key takeaways:

a) The management of Singapore Post (SPOST) hosted a tour of its mail processing facilities at Singapore Post centre where we witnessed the S$45m upgrade in its mail sorting infrastructure,

b) we further explore the imminent benefits from the SingPost-Ailbaba partnership on revenue and earnings growth, and

c) updates on the JV with PT Trikomsel Oke Tbk.

STOCK IMPACT
• The push for higher productivity… What started out as a 2-year project to replace SPOST’s older sorting machines with an integrated sorting system comprising various machines that can sort letters, packets and publications took just 8-9 months. As a result, the mechanisation rate for sorting letters and packets is expected to increase from 85% to 90% while the mechanisation rate for publications will improve from 58% to more than 90%. We believe that this increase in automation is likely to increase capacity to process mail items faster and hence improve service quality and productivity. Machine throughput per hour will increase by 21% while the daily sorting capacity for letters will improve by 17%.

• …frees up land space for possible additional rental income. Before SPOST’s infrastructure upgrade, the group occupied levels 3, 5 and level 7 of the Singapore Post Centre for its mail sorting and segregating operations. Post upgrade, the group will be able to free up level 7 due to a reduction in the number of machines needed, from utilising 26 sorting machines in the past to 16 of them currently. We understand that level 7 sits on a total land area of around 30,000 sf and the group has yet to decide the eventual utilisation for the freed-up area. However, given our assumption that half of the floor is rented out, and the other half is used for internal purposes, the freed-up space is expected to bring in an additional S$1m in rental revenue for the group annually.

• Adapting to the declining traditional mail volumes. The new sorting systems are designed to suit a change in the mail profile that SPOST handles. The group continues to innovate as E-commerce influences the sizes and shapes of mails and packages. Aside the A.M. Mail and SMS mail, we view favourably the group’s SmartPac where it allows blogshops to deliver their goods which are less than 1kg and 240mm (w) x 330mm (l) in dimensions through the traditional letterboxes, without the need for the postmen to deliver these items personally. We think that this allows for better flexibility and would enhance mail volumes.

• Stronger cost management on the back of the productivity push. SPOST’s management has been very active in finding innovative solutions to address space and labour constraints. As a result of this infrastructure upgrade, we expect S$3m-4m in operating cost savings annually and for the full impact on bottom-line most likely to happen in FY16. In addition, as the mail sorting and segregating process becomes more mechanised, the group relies less on manpower, reducing its labour requirements from 700 to 600 operational employees. We expect SPOST to continue investing in such initiatives given the increasingly higher operating cost environment.

• The Alibaba story. In Feb 15, AliExpress-Singpost announced that with the partnership of Pos Indonesia, the trio will improve shipping options for Indonesian E-commerce consumers and we believe that SPOST will continue to grow its regional operations. Despite the paucity of data, we estimate that Alibaba’s FY16 revenue contribution from Southeast Asia (SEA) is about 1.5% and given that SPOST is expected to be a priority partner when customers shop on AliExpress, we have assumed that 80% of the business gets awarded to SingPost. Having worked in 13% for Alibaba’s logistics and last mile delivery costs as a ratio of revenue, we expect this portion of Alibaba’s expenses to contribute S$35m to SPOST’s FY16 top-line. However, we do not think that there will be much impact on FY15 revenue and earnings as volumes are not significant at this stage.

• Recent JV to tap on E-commerce opportunities in Indonesia a positive. SingPost and PT Trikomsel Oke Tbk formed a JV in Indonesia where Trikomsel will take a 67% stake while SingPost will take the remaining 33% stake through its wholly-owned subsidiary SP eCommerce. The group is expected to invest S$1.5m and internally fund this venture. Partnerships of this nature are likely to be more prevalent given the increase in operational requirements when volume ramps up as a result of the increasing regional operations from the Alibaba-SingPost JV.

EARNINGS REVISION/RISK
• Raised both FY16 and FY17 earnings by 3% and 2% respectively to incorporate the increase in rental revenue assumptions and earnings uplift from the E-commerce related business contributed by Alibaba. We have also factored an increase in volume and labour-related expenses to reflect SPOST’s higher variable expenses when volume ramps up. No change to FY15 earnings. We project a 3-year net profit CAGR of 11.3%.

Technical Analysis

Daily Chart
VALUATION/RECOMMENDATION
• Upgrade to BUY with a higher target price of S$2.27 based on our DCF model. We used a DCF model with 7.5% cost of equity and a 2% terminal growth to arrive at our valuation.

SHARE PRICE CATALYST
• Faster-than-expected growth in e-commerce-related businesses.

• Details of the JV with Alibaba.

• Strategic investments and M&As (Read Report)

Source : UOB KayHian Research

 

[a1v1n_]

Closed at 1.93 today.

Anyway, SingPost rolls out new integrated e-commerce platform - Channel NewsAsia

Sent from ME using GAGT

 

[[[ForeverAlone]]]

Closed at 1.93 today.

Anyway, SingPost rolls out new integrated e-commerce platform - Channel NewsAsia

Sent from ME using GAGT

think LKY news affect a bit on SGX ?

noticed today all active one red ..

well the big news actually I heard investors waiting the news on USA side...about FED meeting huh?

 

[a1v1n_]

its dipping.. dipping.. and dipping.

a little slow but just read this. should be the latest about singpost. SingPost, Axa broaden insurance offerings

 

[a1v1n_]

SingPost Q4 net profit falls 51.6% on lack of one-time gains

SINGAPORE: Singapore Post (SingPost) reported on Tuesday (May 12) strong growth in its e-commerce logistics business but fiscal fourth quarter net profit plunged due to lower fair value gains on its investment properties.

SingPost earned S$38.5 million in the three months ended March - a decline of 51.6 per cent from the same period a year ago. The drop was due to a lack of fair value gains, which fell 88.4 per cent to S$5.16 million.

But revenue grew 28.7 percent to S$248.7 million from a year ago, with growth driven by e-commerce logistics and contributions from new subsidiaries, while underlying net profit improved 14.9 per cent to S$41.1 million. Underlying net profit refers to profit after tax and non-controlling interests, before one-off items and gains and losses on sale or revaluation of investment, property, plant and equipment.

For the 12 months ended March, SingPost's net profit fell 17.9 per cent to S$157.6 million while revenue rose 12 per cent to a record S$919.6 million.

SingPost has been investing heavily in logistics and growing its regional network as it seeks to tap the growth in online retail. During the 2014/15 financial year, it made S$224.2 million in various investments including acquisitions to expand its regional network and setting up a new regional e-commerce logistics hub.

The investments also included additional POPStations to strengthen its parcels business, as well as new mail sorting equipment to improve the service quality of Singapore mail operations.

Looking ahead, SingPost said it expects to see the benefits of these investments in the years ahead.

“The pace of innovation driven by global ecommerce mega-trends will only intensify," Group CEO Dr Wolfgang Baier said in a statement. "Building our international network and transforming the mindset of everyone at SingPost is how we will create long-term value for our customers and our shareholders.”

- CNA/hs

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[Shion]

It has been a long time since we took notice of this stock.

Dropping today.