- SingPost will announce FY25E results on 15 May (see Earnings Calendar) and we expect special dividends to reward and return cash to shareholders following the sale of its business in Australia and the unwinding of QSI minority cross-shareholdings, which would bring a further cash inflow of S$55.9m.
- - Read this at SGinvestors.io -
Election over - more asset sale incoming
- With the election over, we believe SingPost will now hasten efforts to size down its postal network branches to reduce cost and it’s likely to sell some of these properties at the same time.
- - Read this at SGinvestors.io -
- Its freight-forwarding business, which is in the process of being sold, will also add to the divestment proceeds.
New business model needs to be forged
- Within its mail business, the postal network is expensive to maintain but serves only 20% of total mail volume. With growing digitalisation of its services, post offices have become less relevant and financially unsustainable. SingPost is discussing with the government to forge a new business model to address this issue.
- As there are new directors coming on the board, a new Group CEO has to be hired if SingPost does decide to invest in a new business. As for now, we understand the process is ongoing and no group CEO/business have been identified yet.
FY25 likely weak - value lies in assets monetisation
- Read more at SGinvestors.io.
