At the same time, they remain cautiously optimistic that losses will nonetheless taper off in FY18, on measures such as warehouse automation and new customer onboarding/fulfilment efforts to restructure TradeGlobal. “Furthermore, we note Paul Demirdjian, the newly-appointed interim CEO of the US business, is equipped with strong e-commerce experience,” say Thai and Chow.
SINGAPORE (March 16): UOB Kay Hian is maintaining its “hold” recommendation on Singapore Post (SingPost) with a target price of $1.46 as FY17 draws to a close, on the notion that FY18 will remain a “year of transformation” for the group where elevated costs will continue to dampen its earnings.
In a Thursday report, analysts Thai Wei Ying and Andrew Chow say that while they are still positive on SingPost’s long-term prospects, investors are to expect TradeGlobal losses to continue in FY17 due to a revenue gap from losses incurred in 3Q17, as well as cost pressure.
