Maybank Research Pte Ltd
May 16, 2025
Singapore Post Ltd: Special Dividend and Strategic Reset
Singapore Post (SingPost) recently reported an underlying loss of SGD0.5 million in 2HFY25, primarily attributed to declining revenues and the high operational costs of its post office network. Despite this, the company announced a special dividend of SGD0.09 per share, slightly below expectations of SGD0.10 per share. Maybank maintains a BUY rating with a revised target price (TP) of SGD0.74, down from SGD0.77. The focus remains on asset monetization as the key strategy for value unlocking.
Catalysts for Growth: Famous Holdings and Property Sales
- With the election concluded, management is expected to accelerate efforts to reduce the scale of the loss-making postal network.
- Potential property sales are anticipated to unlock value for shareholders.
- Active engagement with authorities to pursue the sale of SingPost Centre.
- The sale of Famous Holdings is expected to be finalized within 3Q25.
Overall, the strategy emphasizes asset monetization and rewarding shareholders through special dividends.
New Board and Strategic Direction
SingPost is undergoing a significant board reset and a strategic remake. The new strategy will be formulated once the full board is in place, providing more clarity in the coming months.
Profitability Outlook and Monetization Focus
SingPost is expected to return to profitability in FY26E, although performance may remain weak due to challenges in the international business and the high costs associated with the local postal network amid lower demand. The primary focus should be on asset monetization and dividends rather than solely on earnings.
Key Statistics and Company Description
- Share Price: SGD 0.56
- 12m Price Target: SGD 0.74 (+32%)
- Previous Price Target: SGD 0.77
- Rating: BUY
- 52w high/low (SGD): 0.64/0.42
- 3m avg turnover (USDm): 3.6
- Free float (%): 60.7
- Issued shares (m): 2,250
- Market capitalisation: SGD1.3B
- Market capitalisation: USD970M
- Major shareholders: Singapore Telecommunications Ltd. (21.7%), Alibaba Group Holding Ltd. (14.4%), The Vanguard Group, Inc. (2.3%)
SingPost is described as a leading postal and eCommerce logistics provider in Asia Pacific.
Price Performance Analysis
