On 22 Jul 2025, SingPost announced the sale of its entire freight forwarding business (comprising Famous Holdings and Rotterdam Harbour) – which had previously been identified as non-core as part of an earlier strategic review – for S$177.9m.
Further divestment progress made.
- Read this at SGinvestors.io -
The proceeds from the disposal will be held on SingPost’s balance sheet pending deployment based on its funding needs. FY25 (financial year ended 31 Mar 2025) earnings per share (EPS) would have nudged up from 10.9 to 11.1 Singapore cents on a pro forma basis, had the disposal been completed on 1 Apr 2024.
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Updated fair value estimate of S$0.590.
We update our model to reflect the divestment and finetune our assumptions. In particular,
we remove Famous Holdings from our sum-of-the-parts (SOTP) valuation method,
we include the estimated value of SingPost’s post office network, following the company’s announcement on 19 Jun 2025 that it is looking to enter into a S$50m sale-and-leaseback transaction for 10 post offices located at HDB shophouses.
we also lower our target FY26 EV/EBITDA multiple for the business from 7.7x to 6.0x.
Upgrade rating to BUY on valuation grounds, but investors should exercise caution.
Read more at SGinvestors.io.
Above is an excerpt from a report by OCBC Investment Research. Clients of OCBC Securities may be the first to access the full PDF report @ https://www.iocbc.com/.
