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I also quite curious. Some investors might take the property valuation of paya lebar singpost building as a one-time gain. Postages though raised but now a lots of mails go on-line, so profit is not much.
It has already changed its major industry and raised postage rates, but there is still no breakthrough point.
why like that?
why like that?
Newcomer19707016 ( Date: 25-Apr-2024 15:09) Posted:
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How to check who is buying and selling? Seem like the volume is building up
No guts, no glory.
Needs total transformation for glory days ahead not of old.
Needs total transformation for glory days ahead not of old.
Hope got good announcement. Please go back to your glory old days
Coming back to live..? Some corporate action impending..?
In recent years, the most shake head company I have come across. Service standards are low and when pointed out, no action is taken for years! Should be sold out. But again, who wants this?
Just inadequate, inept and inefficient.
Shake head
Just inadequate, inept and inefficient.
Shake head
SingPost appoints ex-SMRT managing director as CEO for Singapore business
SINGAPORE Post : S08 0% (SingPost) has appointed Shahrin Abdol Salam as the chief executive officer of its Singapore operations with effect from May 1.
Shahrin was the managing director of SMRT&rsquo s Thomson-East Coast Line and the senior vice-president of strategic relations at SMRT Corporation. He was also the rail agency expert and adviser for the Dubai government&rsquo s Roads and Transport Authority.
He succeeds Neo Su Yin, who has been the CEO of the national postal service provider since November 2021. She will be leaving the group to pursue career opportunities elsewhere, said SingPost on Monday (Apr 1).
The company noted that Shahrin has more than 25 years of experience in managing operations, strategic planning, asset management, as well as business development, engineering and customer service.
SingPost group chief executive Vincent Pang added that Shahrin has a &ldquo strong track record&rdquo in leading operations, engineering and service quality. &ldquo I look forward to his leadership in our continued transformation.&rdquo
Shahrin&rsquo s appointment follows recent attempts by SingPost to lift its market value. This includes the completion of a strategic review aimed at enhancing shareholder value.
The review laid out plans to transition the group into a pure-play logistics player as well as the execution of five thrusts over the next three years, including the adoption of a new dividend payout scheme.
SingPost said it was also looking at divesting its non-core assets, including its flagship retail-commercial mixed development SingPost Centre, which is valued at S$1.1 billion as at September 2023.
Additionally, the group will be reorganised into three business units: Singapore, Australia and international. This will give each business unit the &ldquo agility and empowerment&rdquo to operate in its own markets and build on its core capabilities according to individual strategies, said SingPost.
SingPost&rsquo s bid to raise market value might not yield immediate results
SINGAPORE Post (SingPost) : S08 +4.94% appears intent on making efforts to revive its fortunes and lift the stock&rsquo s declining market value amid the postal services sector&rsquo s structural decline.
Last week, the national postal service provider announced the completion of a strategic review aimed at enhancing shareholder value and to ensure that the group is properly valued.
It also laid out plans to pivot to becoming a pure-play logistics provider, including divesting non-core assets and businesses such as the retail-commercial mixed development SingPost Centre.
Listing its Australian business is among the options being explored by the significantly leveraged group. This move aims to secure a valuation for its logistics venture in Australia and reduce the debt incurred from a series of acquisitions in the region.
On the day of the announcement, SingPost&rsquo s share price spiked 6.6 per cent, boosting its market capitalisation to S$911.3 million from S$860 million the previous day. This increase seemed to affirm chairman Simon Israel&rsquo s remark that the market has undervalued the group.
Israel pointed out that the share price did not accurately reflect the group&rsquo s intrinsic value, especially when considering assets such as SingPost Centre, valued at S$1.1 billion as at September 2023, the group&rsquo s Australian business and its upside potential.
However, the rally did not sustain and SingPost&rsquo s market capitalisation continues to be under S$1 billion. The counter closed on Wednesday (Mar 27) at S$0.425, up 4.9 per cent, with a market value of about S$956.2 million.
Investors seeking gains in share price and profitability might hold off on investing in the stock, preferring to wait for sustained improvements in SingPost&rsquo s financial performance. Meanwhile, those on the hunt for dividend yields are likely to overlook SingPost as an option for the time being.
Firstly, SingPost said it will lower the dividend payout ratio to 30 to 50 per cent of its underlying net profit from the existing policy of paying out 60 to 80 per cent.
Vincent Phang, SingPost&rsquo s chief executive, highlighted that the company is no longer a public utility provider as the steady flow of postal income &ndash which had once supported dividends &ndash has dwindled due to the decline of that business.
Additionally, he emphasised the need for capital to fund investments.
Investors no longer view SingPost as a yield play since the company reduced its dividend to S$0.035 (with a payout ratio of 66 per cent) in FY2017. Furthermore, dividend in absolute amount has also dipped over recent years.
Notably, SingPost has not adhered to its own dividend policy since FY2021, as the payout has not exceeded 50 per cent.
Retail investors generally have a penchant for yield-generating investments, which explains the former market darling status of real estate investment trusts (Reits). An asset class known for typically distributing at least 90 per cent of their taxable income, Reits have seen their appeal diminish due to elevated interest rates.
Existing SingPost shareholders can expect to receive a significantly lower dividend in absolute terms under the new dividend policy beginning from the new financial year, should the company fail to enhance its financial performance. This is particularly the case in the absence of stable property income following the divestment of SingPost Centre.
Proceeds from the sale of SingPost Centre &ndash that is if the divestment gets the green light from authorities and shareholders &ndash will go towards paying off debt, funding investments and rewarding shareholders.
But given that SingPost has considerable borrowings and finance costs, reducing debt would likely be a top priority.
As at end-2023, the group had borrowings of S$675.6 million or net debt of S$238.3 million, excluding the S$250 million perpetual securities on its books, as allowed by accounting rules.
Finance costs surged 47.3 per cent year on year to S$14.5 million in the first half of FY2024, higher than its net profit of S$11.5 million.
S& P Global Ratings projected that the group&rsquo s debt-to-Ebitda (earnings before interest, tax, depreciation and amortisation) ratio would range between four and 4.7 times for FY2024. However, this metric is anticipated to improve to below three times by FY2026.
Given its pursuit to diversify and establish a significant presence in Australia, SingPost is likely to prioritise using the proceeds from the sale of SingPost Centre for further acquisitions and repaying borrowings over distributing rewards to shareholders.
While the Australian venture is performing well, ranking among the top five logistics providers by revenue, the robustness of the Singapore dollar compared to the Australian currency has dented SingPost&rsquo s profitability.
S& P Global Ratings noted that SingPost&rsquo s share of the Australian logistics market will remain &ldquo modest&rdquo even after the latest acquisition of courier and logistics services provider Border Express, as the industry is highly competitive and fragmented.
SingPost&rsquo s efforts to enhance shareholder value and better its operations are laudable. But investors may prefer to wait and see the fruits of such labour. Until then, for the short term, the market may begrudge the company the valuation it believes it merits.
SingPost considers divesting S$1.1b SingPost Centre and floating Australian business
SINGAPORE Post (SingPost) : S08 +6.58% is looking at divesting its non-core assets, including its flagship retail-commercial mixed development SingPost Centre at Paya Lebar Central. Floating its Australian business is another option that has stemmed from its strategic review.
In a briefing on Tuesday (Mar 19) to disclose findings from its strategic review, the listed national postal service provider&rsquo s group chief executive officer Vincent Phang said that SingPost Centre &ndash valued at S$1.1 billion as at September 2023 &ndash is a non-core asset.
However, he did not want to provide a timeline of the divestment of this property or other non-core assets as the company pivots to be a pure-play logistics player.
Chief financial officer Vincent Yik pointed out that the divestment will depend on several considerations including market conditions, the use of funds, regulatory approval and operational needs.
The sale is subject to approval from the authorities and shareholders.
SingPost Centre has a gross floor area of 137,134 square metres with an annual yield of 3 to 4 per cent. Its retail segment is being managed by CapitaLand Investment.
Floating its Australian business is also an option for SingPost, as the revised corporate structure following the strategic review creates &ldquo flexibility and (facilitates) future optionalities&rdquo .
Phang said: &ldquo We shared earlier that in Australia, we are seeking some options, potentially investment partners&hellip It allows us to invite some equity and pare down some debt that we have taken on for the Australia business&hellip But more importantly, a strategic partner would offer us a view of what the value of that business is.&rdquo
SingPost&rsquo s Australian logistics business has its own management, balance sheet and operational assets, he added.
The strategic review focused on transitioning the group to a logistics business and has five thrusts to be executed over the next three years, including the adoption of a new dividend payout scheme.
Firstly, the group will be reorganised into three business units: Singapore, Australia and international.
SingPost&rsquo s revenue is presently derived from its three business segments of logistics, post and parcel, and property.
Last year, the group posted its first full-year loss for the post-and-parcel business for FY2023, resulting in a group operating loss of S$15.9 million from an operating profit of S$24.9 million for FY2022.
&ldquo Each business unit will have the agility and empowerment to operate in (its) own markets, to develop market leadership and build on (its) core capabilities according to (its) individual strategies,&rdquo said the group of its revised corporate structure.
&ldquo This provides clarity on the valuation of the individual businesses against comparable market and sector ratings.&rdquo
Next, the group targets for each of these business units to generate a spread above the cost of capital.
To do so, it has identified a list of its non-core assets and businesses &ndash including selected properties and various international assets &ndash which may be monetised for capital recycling.
SingPost will also endeavour to pay out 30 to 50 per cent of its underlying net profit from FY2025. It said the board considers such a policy as &ldquo balanced&rdquo in view of the group&rsquo s capital requirements and delivering &ldquo sustainable returns&rdquo to shareholders.
Previously, the group&rsquo s dividend policy was based on a payout ratio of 60 to 80 per cent of underlying net profit for each financial year.
&ldquo As a public utility, I think that dividend yield probably makes sense,&rdquo said Phang.
&ldquo From a public utility standpoint, it&rsquo s stable, it drives that consistent yield as a dividend for investors. However, we are not a public utility anymore. We have oriented (to)... a logistics enterprise.&rdquo
SingPost acknowledged in its FY2023 annual report that it did not adhere to this dividend policy range over the last three financial years, due to operating environment challenges and the need to conserve cash for its investment in growth initiatives.
For the financial year ended Mar 31, 2023, the group&rsquo s total dividends stood at S$0.0058 per share, comprising a final dividend of S$0.004 per share and an interim dividend of S$0.0018 per share. This represented about 40 per cent of the group&rsquo s underlying net profit for FY2023.
Lim & Tan Securities said that while the new payout ratio for FY2025 is lower, the brokerage believes extra cash retained would enable SingPost to have &ldquo more firepower to transform into a much better company following its strategic review&rdquo .
The other three strategic thrusts identified by the group comprise transforming urban logistics and deliveries in Singapore, achieving scale in Australia, and leveraging its asset-light model and fourth-party logistics platform to serve cross-border customers.
The group said that its current share price &ldquo does not appropriately reflect the intrinsic value of the company&rdquo , whose market value stood at S$860 million as at Monday.
Chairman Simon Israel noted that such a gap is &ldquo particularly apparent&rdquo considering SingPost Centre&rsquo s value of about S$1 billion as at end-September 2023, the Australia business, and the group&rsquo s overall growth potential.
&ldquo Management&rsquo s execution of our strategy will unlock value for shareholders and deliver agility and sustainable long-term growth as an international logistics enterprise.&rdquo
Lim & Tan noted that SingPost&rsquo s recent share price levels were at an all-time low since the company&rsquo s listing in 2003.
&ldquo Although valuations are fair, we think that this strategic review is much needed to help SingPost unlock value for shareholders,&rdquo said its analysts.
just wondering what' s the stake worth ?
seanpent ( Date: 20-Mar-2024 08:21) Posted:
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booster for Singtel with 22% ....
n3wbie ( Date: 19-Mar-2024 21:58) Posted:
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singtel huat ar!!!
n3wbie ( Date: 19-Mar-2024 21:58) Posted:
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Their single largest shareholder is SingTel with 22% and I can' t see that this is a strategic business for them to privatize - it' s more of a legacy that they have ownership in SingPost. Alibaba has some 15% but given the national strategic interests of the postal service, I wouldnt think they are in a position to do so. Lets see what they can divest and hopefully help in improving shareholder returns.
shk363 ( Date: 19-Mar-2024 20:28) Posted:
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As stated, the Sing Post Center alone already valued at $1.08b, whereas current market capitalisation only $0.86b, not to mention Australian assets. More value to unlock....dyodd
shk363 ( Date: 19-Mar-2024 20:28) Posted:
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Now easier to punish and reward accordingly.
Also easier to sell away units to interested parties.
Also easier to sell away units to interested parties.
n3wbie ( Date: 19-Mar-2024 08:30) Posted:
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Temasek should just privatise it at 40 cents. Settle once and for all.
yuhanooi ( Date: 19-Mar-2024 16:47) Posted:
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Ya, that big one and other smaller post office land. Sell and leaseback to clear debts, may be that's the plan....dyodd
cmengchan ( Date: 19-Mar-2024 13:08) Posted:
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I believe Paya Lebar centre is managed by CapitalLand, but Singpost owns it. This property should worth a lot since its next to MRT station.
yuhanooi ( Date: 19-Mar-2024 10:54) Posted:
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Divestment of its properties to monetize. Interesting, got many properties?