Singapore Post - CGS-CIMB Research 2023-11-03: Earnings At An Inflection Point

• Singapore Post (SingPost, SGX:S08) 1HFY24 (Apr to Sep 2023) core PATMI of S$13m (+2% y-o-y) was below expectations, at 31% of our FY24F forecast. The key disappointment was negative translation impact from a weaker A$ and RMB against S$; on a constant currency basis, underlying PATMI grew by 52% y-o-y.
• - Read this at SGinvestors.io -

Australia business to be boosted by inorganic growth in 2HFY24F

• On 1 Nov, SingPost announced:
  1. the proposed acquisition of Border Express, and
  2. further stake increase in its Australian subsidiary FMH (from 88% to 100% — total consideration of ~A$290m would be funded by a mix of cash and borrowings).
• - Read this at SGinvestors.io -
• SingPost believes the acquisition of Border Express can help it widen its reach and broaden service offerings in Australia, and expects revenue synergies via cross-selling to grow wallet share of its customer base.

Earnings inflection for the Post and Parcel segment

• Read more at SGinvestors.io.

ONG Khang Chuen CFA CGS-CIMB Research | https://www.cgs-cimb.com 2023-11-03 SGinvestors.io

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