During the quarter, group operating expenses increased 23% y-o-y to $400 million from volume-related expenses on the back of higher volume in freight forwarding and e-commerce logistics. Group operating profit surged 46% y-o-y to $38 million mainly due to higher profit from FMH, domestic post and parcel (DPP) and from the consolidation of FMH.
CGS-CIMB Research is keeping its “add” call on Singapore Post (SingPost) with an unchanged target price of 90 cents, following the group’s latest 3QFY2021 ended December 2021 business update.
In its business update, SingPost recorded revenue of $437 million, up 24% y-o-y, driven mainly by Famous Holdings (FMH), growth in e-commerce logistics and the consolidation of FMH. The higher revenue was partly offset by lower international post and parcel (IPP) revenue.
