- Due to a secular decline in delivery volumes, the Singapore government mentioned that IMDA is considering allowing SingPost to introduce further postal rate increases to improve segmental profitability. Although no timeline was given, we expect the postal rate adjustments to occur in 3QFY24.
- - Read this at SGinvestors.io -
Help incoming.
- During a parliamentary hearing in early-Jul 23, Singapore’s Minister of State and Communications mentioned that the government would consider allowing Singapore Post (SingPost, SGX:S08) to introduce postage rate adjustments in response to declining domestic letter & mail volumes. Excluding a small 1-3% increase in Jan 23, postage rates have been kept constant since 2014.
- - Read this at SGinvestors.io -
- As discussions are still ongoing between Singapore’s postal regulator Infocomm Media Development Authority (IMDA) and SingPost, we opine that the postal rate adjustments would likely occur in 3QFY24/4QFY24.
Eventual return to profitability.
- Read more at SGinvestors.io.
Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.
Llelleythan Tan UOB Kay Hian Research | https://research.uobkayhian.com/ 2023-07-11
Read also UOB's most recent report:
2025-03-10 Singapore Post - Soft 9MFY25 Results As Rising Costs Hurt Margins.
Previous report by UOB:
2025-01-09 SingPost - Ignore The Noise; Divestments Still On Track.
Price targets by 2 other brokers at SingPost Target Prices.
Listing of research reports at SingPost Analyst Reports.
Relevant links:
SingPost Share Price History,
SingPost Announcements,
SingPost Dividend Payout Dates & Corporate Actions,
SingPost News
