Singapore Post (SingPost)

Key catalysts, say the analysts, include stabilisation of post and parcel operating profit.

Local letterbox package deliveries now cost a flat $1.50 from its range of 90 cents to $3.50 previously.

DBS Group Research analysts Sachin Mittal and Lim Rui Wen have maintained their “fully valued” recommendation for Singapore Post Limited (SingPost), with a stable target price of 64 cents.

SINGAPORE (June 1): As Singapore begins to ease the circuit breaker (CB) measures starting with Phase 1 on June 2, several stocks and real estate investment trusts (REITs) could emerge as beneficiaries.

“SingPost has struggled to make meaningful operating profits from logistics largely due to competitive pressures which have resulted in tight operating margins,” explains DBS analyst Sachin Mittal, citing ‘intense' competition in Hong Kong.

As SingPost's full-year earnings surge 380% to $91.1 million, the group says the Covid-19 pandemic has presented opportunities that might otherwise never have surfaced.

SINGAPORE (April 21): Singapore Post (Singpost) is expected to record lower earnings and revenue ahead, given the disruption in postal and logistics services caused by the novel coronavirus (Covid-19) pandemic, according CGS-CIMB Research.

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SingPost reported that operating expenses had increased 3.5% to $318.4 million in 3Q “due to significant investments to improve service levels”. But, on the ground, customers seem to be not yet convinced of SingPost’s service quality.

3Q revenue dipped 2.0% to $355.9 million, despite the group’s international post and parcel business hitting a record-high quarterly revenue of $148 million.