Singapore Post - Steady Recovery
- SingPost (SGX:S08)’s 3QFY22 (Oct 2021 to Dec 2021) EBIT of S$38m (+26% q-o-q, +46% y-o-y) was a slight beat, driven by strong freight forwarding and e-commerce volumes.
- Post and parcel segment could see further margin recovery ahead with continued growth in e-commerce volumes and Singapore borders reopening. SingPost is also stepping up its investments in Australia to build it into its second home market.
- Reiterate ADD call on SingPost; we expect earnings recovery as more flights through Changi gradually resume. Valuation is attractive as SingPost is trading at 1.3 standard deviation below mean. We lift FY22- 24F earnings per share (EPS) forecast by 1.8-2.5% on higher e-commerce volume assumptions. Our target price for SingPost is kept at S$0.90.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
ONG Khang Chuen CFA CGS-CIMB Research | https://www.cgs-cimb.com 2022-02-25 2022-02-25
Read also CGS-CIMB's most recent report:
2022-07-15 Singapore Post - Pushing Back Recovery Expectations
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