Singapore Post

SingPost's Q1 dividend of 1.25 cts has been credited today. It's is nice to have $ coming in regularly, even it's not a big amount.

SingPost market price is at 52-weeks high today @1.095

Is it due to the recent acquisition from URA on Upper Thomson Road's post office?

or due to the confidence on the new management team?

I believe it is due to a number of factors. Beside those you mentioned, their HQ in Paya Laber is a crown jewel, and also in such uncertain times and low interest rate environment, SP is viewed as a good alternative to park some money.

Personally I think the new management team is more aggressive in wanting to diversify SP. Already, we are seeing top line improvement, though it will be some time before we see improvement in profit. As in any clean up exercise, things will get messy before it gets better.

(04-09-2012, 04:14 PM)CityFarmer Wrote: Is it due to the recent acquisition from URA on Upper Thomson Road's post office?

It would be strange if that is the case. The gahmen always pay fair market value, and according to their formula.
SingPost would not be able to get above market value, which is possible if the purchaser is a private entity who need the piece of property more than SingPost.
Just look at those unhappy Pearl Centre owners...

(04-09-2012, 05:27 PM)wsreader Wrote:

(04-09-2012, 04:14 PM)CityFarmer Wrote: Is it due to the recent acquisition from URA on Upper Thomson Road's post office?

It would be strange if that is the case. The gahmen always pay fair market value, and according to their formula.
SingPost would not be able to get above market value, which is possible if the purchaser is a private entity who need the piece of property more than SingPost.
Just look at those unhappy Pearl Centre owners...

I have to agree with you. Even it is acquired with $20-25 millions price tag, it translate into a meager ~1 ct/share, which should not be viewed as major catalyst.

I am not sure but if revaluation of property may force auditors to revalue all other historical cost PPE in the balance sheet?

(05-09-2012, 11:05 PM)mrEngineer Wrote: I am not sure but if revaluation of property may force auditors to revalue all other historical cost PPE in the balance sheet?

Auditors will not do the re-valuation, the company has to engage an independent professional valuer. The current valuation was based on the property’s highest-and-best-use using the Discounted Cash Flow method.

But once there is a successful transacted market price of the investment properties, a revaluation of intrinsic value will be done by individual investor, either mark-up or mark-down

I saw poster above one of SingPost's mailbox, to encourage registered mail instead of normal mail for timely delivery

Is this a one-off advert in the mailbox, or it is commonly put-up in all mailboxes?

Anyone see it in other mailbox?

I was thinking of owning a part of Singpost; however, after doing a quick look into their latest annual report, I will have to wait and see how well Singpost will do in the near future. At the moment, it looks like Singpost is aggressively expanding into the logistics business.

The mail industry is dying, and the people at the top of Singpost are aware of this, and are trying their very best to overcome this. One good point to note is that Singpost has realized that they need to improve their customer services, and are embarking on ways to do so. They are improving their tracking system, and they are also restructuring their customer service team. Hope it works well.

To circumvent the dying mailing industry, Singpost is acquiring other companies that are related to their core business such as companies dealing with logistics. Revenues under Logistics have grown by more than 3 times in the past 3 years. Profit did not improve that much as it is most likely that the cost is used to acquire more business.

In addition, proof that they are busy expanding, is that earlier this year they have raised $350 million for just this purpose.

Looking in the direction at which the company is moving to, Singpost may end up a logistics company in the future.

(not vested)

(26-09-2012, 04:33 PM)natnavi Wrote: I was thinking of owning a part of Singpost; however, after doing a quick look into their latest annual report, I will have to wait and see how well Singpost will do in the near future. At the moment, it looks like Singpost is aggressively expanding into the logistics business.

The mail industry is dying, and the people at the top of Singpost are aware of this, and are trying their very best to overcome this. One good point to note is that Singpost has realized that they need to improve their customer services, and are embarking on ways to do so. They are improving their tracking system, and they are also restructuring their customer service team. Hope it works well.

To circumvent the dying mailing industry, Singpost is acquiring other companies that are related to their core business such as companies dealing with logistics. Revenues under Logistics have grown by more than 3 times in the past 3 years. Profit did not improve that much as it is most likely that the cost is used to acquire more business.

In addition, proof that they are busy expanding, is that earlier this year they have raised $350 million for just this purpose.

Looking in the direction at which the company is moving to, Singpost may end up a logistics company in the future.

(not vested)

I shared most of your views, except that mailing industrial might not a dying industrial

Singpost was having issues with their mail delivery for the last 2 years, especially during festival periods. IDA has imposed penalty on Singpost twice IIRC. Mr Market had responded with lower market price of <$0.95, a 52 weeks low.

SingPost has quickly re-structured their management, and actions carried out soon after. IMO, the direction headed is right, resources is adequate, and with the right management team. Nothing more to ask for, just wait and hope for the best.

I started to invest when market price <$1, and double-up after attended the most recent AGM and face-to-face with the management team.

(vested)