- After the parcel gate saga, we believe the situation has stabilised with the hiring of the new COO and CFO. SingPost (SGX:S08) has also reiterated its unchanged strategy which is to divest non-core assets and to return value to shareholders.
- - Read this at SGinvestors.io -
- All in all, we expect the bulk of the sale proceeds to be distributed to shareholders as special dividends as part of its FY25 results in May. As a result, we believe patience will be rewarded and maintain BUY with an unchanged SingPost's target price of S$0.77.
Significant special dividends highly likely
- - Read this at SGinvestors.io -
- As of 30 Sep 2024, SingPost still holds about S$428m of cash, hence we believe it will not need to keep so much cash from the sales proceeds on its balance sheet. This works out to be around S$0.17-0.20 per share for potential special dividends.
- Even without Famous, we expect the SingPost's dividends to be around S$0.12-0.15 per share.
Singapore business will need more right-sizing
- Read more at SGinvestors.io.
