Singapore Post

[kelvesy]

Yes, if not, there will be no growth if even negative growth.

<not vested>

[CityFarmer]

The company has paid 6.25 cents dividend for many years. A more evenly distributed dividends are also beneficial for retirees...

(not vested)

Singapore Post aims to pay 7 cents dividend in FY2016, up 10.7%

SINGAPORE (May 29): Singapore Post ( Financial Dashboard) will pay a special dividend of 0.75 cents, taking total payout for FY2015 to 7 cents and revise its dividend policy to make a similar size distribution for FY2016.

The company says in a regulatory filing that it is looking to positive prospects and healthy operating cash flows to support its proposal to pay three interim dividends of 1.5 cents each and a final dividend of 2.5 cents.

The revision represents an increase of nearly 11 % from its current distribution plan.

Singpost, which is trading cum dividend, is up 4.5 cents to $1.88 as at 12:28 p.m.
http://www.theedgemarkets.com/sg/article...fy2016-107

[butcher]

I noted Sing Post have changed its accounting policy on investment properties which were previously on the 'cost model' at cost less accumulated depreciation which were changed to the 'fair value' model where the properties are fair valued at each reporting period end.

Any kind VB able to attend the AGM? Think perhaps can seek the management or auditor's opinion on whether the 'fair value' model is more appropriate, considering market best practices.

[CityFarmer]

I noted Sing Post have changed its accounting policy on investment properties which were previously on the 'cost model' at cost less accumulated depreciation which were changed to the 'fair value' model where the properties are fair valued at each reporting period end.

Any kind VB able to attend the AGM? Think perhaps can seek the management or auditor's opinion on whether the 'fair value' model is more appropriate, considering market best practices.

I have moved the post to SingPost thread.

I reckon no "absolute right" approach, only "appropriate" approach. I didn't follow for a while on the company, but I reckon the change, might due to recent re-development of SingPost building. It is no longer part of PPE, but an investment property. IMO, cost-base less accumulated dep, is appropriate for PPE, but mark-to-market is appropriate for investment property.

(not vested, but monitoring)

[Musicwhiz]

Ultimately, it's "just" a paper gain; there's no cash flow effect unless you sell it off. That's the beauty of investment property and fair value accounting - it makes you feel "richer".

[weijian]

Ultimately, it's "just" a paper gain; there's no cash flow effect unless you sell it off. That's the beauty of investment property and fair value accounting - it makes you feel "richer".

Mgt might be trying to give a helping hand to investors by making their balance sheet easier to 'value' (since NAV is now more reflective of the 'true state' of value)...Ok, i am joking. I am guessing their remmuneration is benchmarked to TSR/NAV and any revaluation has a higher probability of increasing their paycheck.

OTOH, value investors who love to dig beyond what the numbers suggest, will feel a little bit disappointed now that the treasure hunt is easier to find for all participants in the party!

[CityFarmer]

Ultimately, it's "just" a paper gain; there's no cash flow effect unless you sell it off. That's the beauty of investment property and fair value accounting - it makes you feel "richer".

Mgt might be trying to give a helping hand to investors by making their balance sheet easier to 'value' (since NAV is now more reflective of the 'true state' of value)...Ok, i am joking. I am guessing their remmuneration is benchmarked to TSR/NAV and any revaluation has a higher probability of increasing their paycheck.

OTOH, value investors who love to dig beyond what the numbers suggest, will feel a little bit disappointed now that the treasure hunt is easier to find for all participants in the party!

The value of SingPost building, had been understated in balance sheet, was a "well-known" fact, among investor. Indeed, SingPost has done investor a favor, by providing a formal valuation, instead of guesstimate.

[CityFarmer]

Alibaba is getting serious with SingPost...

(not vested)

Alibaba raises stake in SingPost to 14.51% with $187.1 million share acquisition

SINGAPORE (July 8): Singapore Post ( Financial Dashboard) and Alibaba Group has announced three initiatives to strengthen cooperation and build a leading e-commerce logistics platform to service Asia Pacific and beyond.

Alibaba Group will purchase 107.6 million new ordinary shares amounting to 5% of the existing share capital of SingPost for $187.1 million.

Upon completion, Alibaba’s deemed interest on a fully diluted basis in SingPost will rise from 10.23% to 14.51%.

Alibaba Group acquired its initial stake in SingPost in 2014.
...
http://www.theedgemarkets.com/sg/article...cquisition

[CityFarmer]

SingPost continue its growth, and most importantly the growing dividend, from 1.25 cents to 1.5 cents per share i.e. 20% growth. I reckon the rest of quarterly dividends will be 1.5 cents per share.

(not vested)

SingPost kept at ‘buy’ by OCBC with $2.19 fair value

SINGAPORE (July 29): OCBC ( Financial Dashboard) is maintaining its “buy” rating on Singapore Post (Financial Dashboard) with a fair value of $2.19 as it continues to grow via acquisitions and its financial position remains solid.

As at end 1QFY16, SingPost was in a net cash position of $329 million, placing the group in a good position to grow via acquisitions in the near term, says lead analyst Carmen Lee in a July 29 report.

Meanwhile, the group has declared an interim dividend of 1.5 cents, compared to the 1.25 cents in the same period last year.

SingPost reported this morning a 20.7% y-o-y increase in revenue to $254.6 million and a 15.8% rise in net profit to $46.6 million for the 1Q16 ended June.

Stripping out one-off items, underlying net profit still rose 8% to $40.3 million in the quarter, accounting for 25.6% of OCBC’s full-year estimate, which is in line with OCBC’s expectations.

Revenue rose with continued growth in e-commerce and logistics contributions and the inclusion of new subsidiaries; But excluding the impact of M&As as well as the divestment of subsidiaries, revenue remained constant.

Underlying operating profit margin decreased from 22.5% in 1Q15 to 20.2% in 1Q16.
...
http://www.theedgemarkets.com/sg/article...fair-value

[evilbdboi]

Taken from singpost website:
http://www.singpost.com/investor-centre/...ation.html

DIVIDEND INFORMATION

Change in dividend policy from FY2015/16 and proposed special dividend for FY2014/15

The Board of Directors of Singapore Post Limited (the "Company") wishes to announce that the Company will enhance its dividend policy from the financial year ending 31 March 2016.

Barring unforeseen circumstances, the Company aims to make a total annual dividend payout of 7 cents per share, which is proposed to be paid on a quarterly basis in the proportions laid out in the table below:-

Period Current Dividend Per Share Proposed Dividend Per Share
Q1 Interim 1.25 cents 1.50 cents
Q2 Interim 1.25 cents 1.50 cents
Q3 Interim 1.25 cents 1.50 cents
Q4 Final 2.50 cents 2.50 cents
Total 6.25 cents 7.00 cents

The Company regularly reviews its capital structure, taking into consideration factors such as the Company's financial performance and condition, capital expenditure and investment requirements, funding sources and borrowing costs, and credit rating. The Board believes that the positive prospects and healthy operating cash flows of the Company will enable the Company to maintain its enhanced dividend policy, enhancing shareholder returns while retaining financial flexibility.

In respect of the financial year ended 31 March 2015, the Board is recommending a special dividend of 0.75 cents per share, to raise the proposed total annual dividend from 6.25 cents per share to 7 cents per share.

(Vested)