Singapore Post - Lim & Tan Securities 2024-10-16: Value Unlocking In Progress

• 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:
  1. - Read this at SGinvestors.io -
  2. IPO/Partial Sale of Australian Logistics that values the segment at S$1.2bln,
  3. Integration/ scaling of their Australian business with the acquisition of Border Express to make it the top 5 logistics player in Australia and
  4. 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.

Nicholas Yon Lim & Tan Securities Research | https://www.limtan.com.sg/ 2024-10-16 SGinvestors.io

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