Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Bottom-Up

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<li>
<a href="https://www.smartkarma.com/entities/singapore-post-ltd" target="_blank" data-smartkarma-citation="entities:150:1" rel="noopener">Singapore Post (SPOST SP)</a> is selling its key asset, Australian-based Freight Management Holdings (FMH), for an enterprise value of S$897.6mn, which will generate a gain on disposal of S$312.1mn.</li>
<li>SingPost will apply the proceeds to paring down its Aussie dollar-denominated debt. SingPost will also consider, in due course, the payment of a special dividend.</li>
<li>Once the FMH transaction completes, the board will "review and reset the Group’s strategic plan, with a continued focus on shareholder value".</li>
</ul>



Singapore Post (SPOST SP) is selling its key asset, Australian-based Freight Management Holdings (FMH), for an enterprise value of S$897.6mn, which will generate a gain on disposal of S$312.1mn.
SingPost will apply the proceeds to paring down its Aussie dollar-denominated debt. SingPost will also consider, in due course, the payment of a special dividend.
Once the FMH transaction completes, the board will "review and reset the Group’s strategic plan, with a continued focus on shareholder value".


SingPost (SPOST SP): What Next After FMH Sale?

Leading International Investment Research, Edison Investment Research

Edison Investment Research

Leading International Investment Research

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Following Singapore Post’s resilient H1 results in November, the company has now announced that it has agreed to sell its Australian logistics business for an enterprise value of c A$1bn to a private equity investor. The disposal is likely to result in the reporting of a gain on disposal of over S$300m. The proceeds are likely to be used to pay down debt and to potentially pay a special dividend to shareholders.

Following Singapore Post’s resilient H1 results in November, the company has now announced that it has agreed to sell its Australian logistics business for an enterprise value of c A$1bn to a private equity investor. The disposal is likely to result in the reporting of a gain on disposal of over S$300m. The proceeds are likely to be used to pay down debt and to potentially pay a special dividend to shareholders.

Singapore Post - Australian logistics to be divested for c A$1bn

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’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

The Q125 results shine a light on the latest initiatives to underpin the inherent value within Singapore Post, which include a review of the Australian operations and ongoing discussions with the Singapore government on postal services. SingPost’s transformation from a post and parcel delivery company into a global logistics operator appears to have slipped under the radar of investors and now offers an opportunity for investors to reassess its potential. Our forecasts and valuation are unchanged and we believe there is now c 60% upside in the share price.

The Q125 results shine a light on the latest initiatives to underpin the inherent value within Singapore Post, which include a review of the Australian operations and ongoing discussions with the Singapore government on postal services. SingPost’s transformation from a post and parcel delivery company into a global logistics operator appears to have slipped under the radar of investors and now offers an opportunity for investors to reassess its potential. Our forecasts and valuation are unchanged and we believe there is now c 60% upside in the share price.

Singapore Post - Q1 profits more than double

At the AGM management discussed the outcome of Singapore Post’s strategic review and the recently announced strategic review into value creation options relating to the Australian logistics business. In our view, expansion in the Australian logistics market offers long-term growth and that historical issues surrounding structural weakness in postal volumes may be resolved by growth in replacement volumes from e-commerce. We continue to believe there is more than 60% upside in the share price.

At the AGM management discussed the outcome of Singapore Post’s strategic review and the recently announced strategic review into value creation options relating to the Australian logistics business. In our view, expansion in the Australian logistics market offers long-term growth and that historical issues surrounding structural weakness in postal volumes may be resolved by growth in replacement volumes from e-commerce. We continue to believe there is more than 60% upside in the share price.

Singapore Post - AGM update confirms review intentions

Singapore

Singapore Post Limited is the national postal service provider in Singapore. The Company provides domestic and international postal and courier services including end-to-end integrated mail solutions covering data printing, letter-shopping, delivery and mailroom management, and others. Singapore Post also offers end-to-end e-commerce logistics solutions.

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Singapore Post (SPOST SP)

SingPost (SPOST SP): What Next After FMH Sale?

SingPost is probably worth picking up here. But it's not a strong conviction trade. The muted price action after announcing the FMH sale is...

David Blennerhassett

Singapore Post - Australian logistics to be divested for c A$1bn

Following Singapore Post’s resilient H1 results in November, the company has now announced that it has agreed to sell its Australian logistics...

Edison Investment Research

Singapore Post - Results boosted by M&A and reduced losses

Singapore Post’s H1 trading was ‘resilient’, despite challenging market conditions across several of its businesses. Revenue increased by 20%,...

Edison Investment Research

Singapore Post - Q1 profits more than double

The Q125 results shine a light on the latest initiatives to underpin the inherent value within Singapore Post, which include a review of the...

Edison Investment Research

Singapore Post - AGM update confirms review intentions

At the AGM management discussed the outcome of Singapore Post’s strategic review and the recently announced strategic review into value creation...

Edison Investment Research

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