Singapore Post

[newborn1000]

Did a quick search and found that there is no thread on Singpost.....

So I shall the ball rolling......

Interim dividend (tax exempt one-tier) of 1.25 cents per ordinary share for the second quarter ended 30 September 2010

Company still has S$335m in cash in bank, read that they are looking for suitable company to take over.

But in the mean time, they used some of the cash to buy back shares or place in higher yielding.

More to come later......

[FFNow]

hi newborn,

i did a post on it in my blog at http://financiallyfreenow.wordpress.com/...nd-cash-5/ hope it's helpful for u =)

[Ben]

Any SingPost fan here? Did you people noticed that this postal company is on a buying spreed recently?

1. Jul 2011 - acquires 20% stake in Shenzhen 4PX Express Co Ltd - RMB60M (S$12M)
2. Jun 2011 - raises stake in Efficient E-Soultion Berhad to 20.12% - RM8.05M
3. Jun 2011 - proposed acquisition of 30% stake in Indo Trans Logistic Corporation - US10.8M
4. May 2011 - Acquired the remaining 30% stake in DataPost Pte Ltd from Oce N.V. - S$6.0M

Also, Singpost has been busy buying back shares from the market recently. This will improve EPS in the future.

It is obvious that SingPost is trying urgently to transform itself and diversify its revenue streams from non-postal businesses. I believe this traditional postal company will be a more diversified company in a few years' time. Meanwhile, while waiting, I am looking forward to the $0.025 dividends payable on 15 July

[KopiKat]

What I don't quite understand is the share buy-back. They increased their borrowings last year by $200Mil with the intention of acquiring other businesses, but then, they are using it also for share buy-back. Does the company think their shares are so undervalued?? Or are they just trying to support the share price??

Further, the sudden spurt of acquisition makes me wonder if this is diversification or diworsesification! Though small, can the management really manage and ensure a smooth integration of all these businesses with different culture from all over the world?

Vested - but divested most of it while I wait to see the effect of this current spurt of acquisitions before making any further decision

[violinist]

(vested)

One aspect of Singpost's business I wish it would improve is delivery of internet-ordered merchandise. I am sure more and more people are ordering online. I was told that a delivery man said he is overwhelmed, and has to decline orders. Vpost, besides being cheap, has poor quality. If not for the fact that I stay near to Singpost centre, I would not consider using Vpost.

[edragon]

They are trying to do more e-fulfillment, the last stage of the on-line order or e-commerce.
Hopefully, the Shenzhen acquisition will enable Singpost to announce a vPOST China address and I will start ordering direct from China especially Shenzhen and Guangzhou.
Vested

[Ben]

Further, the sudden spurt of acquisition makes me wonder if this is diversification or diworsesification! Though small, can the management really manage and ensure a smooth integration of all these businesses with different culture from all over the world?

If you follow this company closely, you will realise that it is not a sudden spurt of acquisition. They have been buying stakes in other companies in the last few years, but the buying intensify in the last few months. It is too early to say if the management can manage these new businesses, but I personally feel that their direction is correct. I would be worried if they just cling on to their strong hold of postal services and not doing anything else.

[Musicwhiz]

Business Times - 28 Jul 2011

SingPost Q1 profit dips 3.5% to $39.24m

Revenue goes up 3% to $142.3m for the quarter

By NISHA RAMCHANDANI

SINGAPORE Post (SingPost) saw net profit dip 3.5 per cent to $39.24 million while revenue climbed 3 per cent to $142.3 million for the first quarter ended June 30, 2011.

Underlying net profit - which excludes one-off items - was flat at $37.37 million. Earnings per share for the quarter were 2.042 cents, compared to 2.111 cents in the corresponding quarter a year ago.

Contributions from its various business segments were mostly higher with revenue from its mail segment increasing 1.6 per cent to $97.24 million.

Logistics revenue, which grew the strongest, was up 10.7 per cent to $51.24 million. Retail revenue increased 1.5 per cent to $16.56 million due to higher retail product contributions, which offset the decline in financial services revenue after the sale of its SpeedCash business in March this year.

Rental and property-related income rose 5.1 per cent to $10.6 million while miscellaneous income increased 7.9 per cent to $4.5 million.

Meanwhile, total expenses for the group were up 6 per cent to $109.3 million. However, net cash from operating activities also came in higher at $37.7 million in Q1 FY11/12, compared to $29.1 million in the corresponding quarter last year.

The board has declared an interim quarterly dividend of 1.25 cents per ordinary share, payable on Aug 31.

'The group continues to face formidable challenges in the postal industry arising from e-substitution, competition and rising operating costs and is accelerating efforts to diversify and grow its businesses,' SingPost said. 'Besides driving organic growth in Singapore and in the regional markets through Quantium Solutions, the group will continue pursuing acquisition opportunities in the Asia-Pacific region.'

Shares in SingPost closed at $1.10 yesterday, unchanged.

[thefarside]

I see the transport of merchandise ordered through the internet to be a critical growth sector for Singpost. They have to get the company's execution right to capture this market.

[newborn1000]

Sold everything around $1.20 quite a while back.......

This type cannot grow, not like coca cola........

but was extremely undervalued during 2009........tat time with 11% dividend if i remembered correctly.....