Singapore Post

[Drizzt]

Definitely more interesting now to take a look. But when I was reading the edge article today, the main criticism that occurred in my head was operationally is Singpost ready to take on the challenge. On one side, there are these new consultants that are engaged to come in for revolution and on another side singpost has its old legacy staff and culture to deal with. When I take a look at quantium solutions website and their staff organisatiom and scale, I really wonder whether they can be a service provider for the region. Perhaps it's just the ability of these consultants to bring in big names like Adidas and Ali baba but what happens if they decide to move on one day? Anyway, I hope the best for the transformation as its success will make Singapore proud.

the question is whether they can build up and keep the startup culture , which i heard is what theyare trying to do. that portion of the business is rather decentralized.

[Madmoney]

There are only 2 real e-commerce play listed on the SGX. SingPost is easier to understand and is supported by a stable dividend payout.

[greengiraffe]

real business is a tough one. Sing Post badly needs the logistics arm to get going in order to make up for the shortfall in traditional mail business.

In anyway, logistics is a tough business too. Volume while essential may not translate into bottomline as it remains a brick and mortar business model.

As you rightly pointed out, Sing Post is in play due to the emergence of Alibaba recently. Enjoy the play while it lasts. When SMRT as an essential business can go wrong at the wrong pricing, just watch out for irrational exuberance while dwelling on bubbles.

Odd Lots
Vested
GG

There are only 2 real e-commerce play listed on the SGX. SingPost is easier to understand and is supported by a stable dividend payout.

[davidc]

Do you think with the recent Newegg announcement that they will be serving Singapore, we will further see an increase in Singpost's logistic segment?

Ecommerce certainly seems like its on the uptick here.


Ref:
http://www.hardwarezone.com.sg/tech-news...-end-month

[newborn1000]

Do you think with the recent Newegg announcement that they will be serving Singapore, we will further see an increase in Singpost's logistic segment?

Ecommerce certainly seems like its on the uptick here.


Ref:
http://www.hardwarezone.com.sg/tech-news...-end-month

........quality over quanity

The more quality products online the better, more returning customers is the key

[AlphaQuant]

Good read from UOB-KayHian

******************************

WHAT’S NEW
■ Management update. We spoke to management recently and this report highlights the key takeaways.

STOCK IMPACT
■ Championing a low-cost e-commerce model. Singapore Post’s (SingPost) fully- integrated end-to-end e-commerce solutions provide an avenue for local and global brands to grow their online businesses easily and quickly. Through SP eCommerce, the group offers B2B4C solutions that include website development and content management, logistics solutions and support services. Management believes this helps customers avoid major capital outlays in technology and delivery infrastructure, and alleviates the difficulty of navigating local customs requirements and transaction-related risks. Regional ramp-up would also be more efficient, given SingPost’s existing network.

■ Value-for-money delivery: Service reliability trumps speed. Based on our channel checks, SingPost’s shipment fees can be as much as 50% lower than competitors. This is attributable to its emphasis on service reliability rather than speed of delivery in order to capture more market share. A reliable, on-time and value-for-money services would attract more businesses and customers, especially to weather the possibility of an economic slowdown. SingPost is a member of Kahala Posts Group (KPG), an alliance of 10 postal operators that aim to make overseas shipments more convenient with full visibility of costs. KPG has tapped onto the e-commerce trend as well and has taken initiatives to increase its members’ competitiveness in the international delivery market.

■ Developmental spending to continue as SingPost continues to invest in its e-commerce logistics platform. The group is into the fourth year of its transformation programme and had spent S$10m-15m annually in the last three years. We think this is likely to continue for another 2-3 years as the group upgrades its IT systems and builds its regional delivery network.


■ A bigger stake by Alibaba?
Alibaba Group’s proposed investment of S$312.5m for a 10.35% stake in SingPost has raised questions of the likelihood that it will take a larger share eventually. While we cannot ascertain the probability of this happening, we note that under the Postal Services Act, Alibaba would need to seek prior written approval of the IDA to control 12% of SingPost. Alibaba has made a string of acquisitions and investments in the last one year leading up to its IPO in the US, including a 9.9% stake in large logistics company Qingdao Haier Logistics and a partnership with China Post.

■ Filling the gaps in Southeast Asia. Management continues to be on the lookout for opportunities to grow its e-commerce logistics network in the region. Keeping in line with its strategy of pursuing local players with existing logistics capabilities, we do not rule out the possibility of more M&As or investments by the group. We note that within Southeast Asia, it seems to be missing a strong presence in Indonesia. SingPost will also expand its Lock+Store self-storage footprint with its first facility in Malaysia in Sep 14. We see the group bringing the brand to other regional markets in the future.

EARNINGS REVISION/RISK
■ No change to our earnings model. We expect faster growth in e-commerce-related activities to offset near-term dilution. We project a 3-year net profit CAGR of 9%. We see more upside from a JV with Alibaba and M&As.

[CityFarmer]

SingPost was a "Slow Growers", which good dividend yield is the only attraction. Base on the 1Q performance, the company will remain as a Slow Grower, till proven by the e-commerce initiative...

(not vested)

SingPost posts 5.1% higher 1Q net profit of $39.2 mil

SingPost said it posted a net profit was higher by 5.1% at $39.2 million in the first quarter of FY2014/15 (1QFY14/15), compared to $37.3 million in the same quarter last year (1QFY13/14). Excluding one-off items, underlying net profit was flat at $36.2 million.
...
http://www.theedgesingapore.com/the-dail...2-mil.html

[greengiraffe]

I bet my $ that the alibaba factor will eventually sink into the tough business reality. Basically Sing Post needs the e-comm/log to transform and survive. I seriously doubt that growth will be spectacular since its a tough business that requires huge capex like fleet, warehouses and manpower - nothing different to traditional mail but certainly more bulky and less economies of scale...

GG

SingPost was a "Slow Growers", which good dividend yield is the only attraction. Base on the 1Q performance, the company will remain as a Slow Grower, till proven by the e-commerce initiative...

(not vested)

SingPost posts 5.1% higher 1Q net profit of $39.2 mil

SingPost said it posted a net profit was higher by 5.1% at $39.2 million in the first quarter of FY2014/15 (1QFY14/15), compared to $37.3 million in the same quarter last year (1QFY13/14). Excluding one-off items, underlying net profit was flat at $36.2 million.
...
http://www.theedgesingapore.com/the-dail...2-mil.html

[CityFarmer]

The postage rates finally increase, after the 8 years...

The corresponding announcement from SGX here.
http://infopub.sgx.com/FileOpen/SGX_Ann....eID=313325

(not vested)

Postage rates to go up from October

SINGAPORE — From October, local and international postage rates will see an increase, with local rates increasing between S$0.04 and S$0.20, and international rates rising between S$0.05 to S$0.25, said SingPost today (Sept 2).

For instance, domestic postage rates for a weight of up to 20g will increase from $0.26 to $0.30, while items of up to 40g will increase from $0.32 to $0.37.

The last time postage rates were adjusted was at least eight years ago in 2006. SingPost said since then, costs have risen by nearly 50 per cent.

To offset the increase, SingPost will be giving a free stamp booklet containing six 1st local stamps to every household, who will receive it a week before Oct 1. SME franked mail customers will also get a 5 per cent rebate for a year.

SingPost said it will continue to roll out service enhancements, including installing new automated sorting machines, buying more three wheelers and hiring 200 more postmen under its $100million service improvement plan.
http://www.todayonline.com/singapore/pos...go-october

[greengiraffe]

So easy meh... the ongoing costs of acquiring logistic centre, the manpower to deliver... plus the competition...

Got to differentiate between Alibaba hype and the hard reality...

Its an essential new business that is needed to make up for the dying traditional mail business...

Odd Lots Vested
GG

http://www.businesstimes.com.sg/premium/...s-20140922

PUBLISHED SEPTEMBER 22, 2014
E-COMMERCE BOOM
SingPost delivers a new business
Its unit Quantium Solutions is building an end-to-end e-commerce platform
BYAMIT ROY CHOUDHURY
amit@sph.com.sg @AmitRoyCBT

'Our strategy . . . is to reinvent our core postal business by leveraging our strengths to develop a new wing in regional e-commerce logistics.'
- Dr Baier
[SINGAPORE] Singapore Post (SingPost) is well on its way to transforming itself from a government monopoly delivering letters and parcels into a highly competitive regional e-commerce power house in an age when email is fast replacing letters.
Domestic mail volume in Singapore has now been declining for two years in a row. The average Singaporean posts only six letters a year.
Wolfgang Baier, SingPost's group chief executive officer, notes that SingPost is working hard towards building up a solid e-commerce platform for its very survival.
"And it is early days yet, with quite some way to go," he told The Business Times