- We took a deep dive into what’s next for Singapore Post (SingPost, SGX:S08) following its plans to review commercial sustainability of domestic post and strategic transformation, and upgrade SingPost from Hold to ADD as we see potential catalysts ahead that could aid SingPost’s earnings recovery and drive its transformation into an Asia Pacific logistics solutions provider.
- - Read this at SGinvestors.io -
Catalyst 1: Postal rate hike is step 1 in fixing domestic postal losses
- We believe SingPost will receive government approval by end-2023F to carry out a postal rate adjustment as a stop-gap measure while discussions continue to find a longer-term solution. We assume a 50% hike in the base rate effective FY25F (Apr 2024) (which still puts Singapore’s postal rate below developed countries), providing an annual EBIT uplift of ~S$20m.
- - Read this at SGinvestors.io -
Catalyst 2: International business anchors FY24F earnings recovery
- Read more at SGinvestors.io.
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 2023-09-18
Read also CGS-CIMB's most recent report:
2024-02-08 Singapore Post - Navigating Industry Headwinds.
Previous report by CGS-CIMB:
2023-11-03 Singapore Post - Earnings At An Inflection Point.
Price targets by 3 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
