Given the robust operating profit growth that FMH possesses, the acquisition is expected to be earnings accretive and would help boost SingPost’s profitability from the first quarter of 2024 onwards, Tan notes.
UOB Kay Hian analyst Llelleythan Tan has maintained his “hold” call on Singapore Post (SingPost) with a higher target price of 58 cents from 52 cents previously following the company’s announcement of acquiring additional stake in Freight Management Holdings (FMH).
On Jan 11, SingPost announced that it is acquiring an additional 37% stake in FMH, taking its total stake to approximately 88% post-acquisition. This is in line with Singpost’s key strategy to expand its overseas logistics operations, accelerating its plan for eventual full ownership of FMH.
