SingPost (SGX:S08) is a deep value stock that trades at historical 1.0x P/B and with a RNAV of S$1.4bln that outshadows its current S$1.2bln market cap.
We think the various upcoming catalysts will re-rate SingPost's share price upwards towards that RNAV valuation:
- Read this at SGinvestors.io -
IPO/Partial Sale of Australian Logistics that values the segment at S$1.2bln,
Integration/ scaling of their Australian business with the acquisition of Border Express to make it the top 5 logistics player in Australia and
Successful negotiations with IMDA to make P&P segment more structurally viable.
Scalable Australian business.
- Read this at SGinvestors.io -
As businesses increasingly seek to address logistical gaps exposed by the COVID-19 pandemic, SingPost’s Australian logistics segment is well-positioned for growth, bolstered by advanced 4PL services and proprietary technology.
Freight Management Holdings (FMH), an asset-light company driven by technology, is currently in a growth phase and has demonstrated its capacity to manage inflationary pressures effectively. Given its leading position and growth trajectory, we are confident that FMH can continue to expand further.
In an attempt to mark the valuation for FMH, we note that the Australian news has reported several bidders for SingPost’s Australian logistics assets.
eCommerce to enhance profitability
Read more at SGinvestors.io.
Above is an excerpt from a report by Lim & Tan Securities Research. Clients of Lim & Tan Securities may be the first to access the full PDF report @ https://www.limtan.com.sg/.
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