Their legal loan shark activities at 18% p.a. !! Also got processing fees $65 or 1.99% of loan, whichever is higher. Plus admin fee ($1.85 +GST) if don't do monthly repayment by GIRO. Payment protector plan at 1.25% of outstanding balance.
I wonder if SingPost is exposed to any of the loans or all risks are undertaken by their service partner. If so, very good biz for SingPost!
SINGAPORE (Dow Jones)--Swiss Post, Switzerland's dominant mail operator, is buying its Singapore-based franchisee as part of a plan to increase its presence in the Asia-Pacific region. "Singapore is a key market for us, and we are committed to further expanding our reach in this region by using Singapore as a gateway," Swiss Post's chief executive, Ulrich Gygi, said in an interview Friday. Gygi declined to say how much Swiss Post is paying its former Singapore franchisee.
Swiss Post expects to complete by year-end the takeover of Singapore-based SPI Mail International Pte. Ltd., providing the Swiss firm with a direct presence in Singapore, Malaysia and Hong Kong. The company will then focus on expanding into new markets including China and Thailand, Gygi said. Swiss Post has also signed direct entry and international mail agreements with Singapore Post Ltd. (S08.SG) and Pos Indonesia to enhance its distribution network in Asia, he added.
Swiss Post's Asian operations will focus on delivering letters and small parcels on behalf of companies in the region, with services including mass mailing, management of mailing lists and other data, and the insertion of letters, brochures and magazines into envelopes. In future, the Asian operations may also provide consultancy services in the region, which Swiss Post already does in Eastern Europe, added Daniel Baettig, chief financial officer of Swiss Post International.
Swiss Post won't compete directly with companies like Fedex Corp. (FDX) and United Parcel Services Inc. (UPS) in Asia, as the latter are courier services and are relatively new entrants in the mail business, Gygi said.
Swiss Post's moves come as former national postal monopolies face increasing competition, not just from specialist mail and courier companies but also the use of the internet to deliver mail and documents, Gygi said. The key to survival, he said, is to protect the domestic market by offering high quality services while being innovative in providing new products and services, including those in the electronic arena. Next year, Swiss Post will introduce electronic registered mail, which will involve electronic signatures, encryption and the use of electronic keys to identify users of the system.
Swiss Post operates a network of about 2,700 post offices across Switzerland, offering delivery services as well as payments collection and financial products such as savings accounts, mortgage lending and mutual funds. Its other businesses include Switzerland's largest online search engine, search.ch.
Extracts fm CIMB Report date 31-Oct-05,
Surprise in the post
Extracts fm CSFB Report dated 14-Dec-05,
Extracts fm Lim and Tan Report dated 17-Mar-06,
More To It Than Ezycash
Good to keep
Results ahead of expectations - Underlying net profit (excluding exceptionals and change in depreciation policy) grew by 8.3%yoy to $115m, ahead of our expectations. Operating revenue rose 9.8% against a flat performance previously, thanks to the strategic move to reinvent and rejuvenate existing businesses. Operating leverage and stringent cost control helped maintain operating margin at the attractive 34.8%.
All business segments enjoyed respectable growth - Mail revenue, which accounted for almost 80% of group revenue surprised with a 7.6% growth despite a stagnant market. Logistics division was the star performer with revenue growth of 14.7% and that of retail division rose 14.6%. Leveraging on its extensive network, brand equity and deep penetration into the HDB heartland, SingPost has successfully transformed from a boring to alluring stock. Final dividend of 1.75cts exceeded guidance - While the group were guiding for a total normal DPS of a least 5cts (1.25cts to be paid after each quarter), it has decided to top-up another 0.5cts for Q4. Total payout ratio of 85% fell within the target range of 80– 90% of net profit. A special DPS of 10cts has been paid after 3QFY06.
An attractive acquisition target? - Following SingTel’s recent stake reduction from 30.9% to 25.9% (placement of 95m shares at $1.15/sh). We expect further disposal through a strategic sale after the 6-month lock-up period from 12 Dec 2005. The entry of a strategic investor could be positive for SingPost particularly if it can propel the group into a global player.
An excellent scorecard - SingPost has silenced many critics who ignored the stock for its lack of growth. Over the last 2 years, management has successful rejuvenated the group and at the same time, optimised its capital structure through generous cash payout. The stock now offers an attractive average ROIC and ROE of 22% and 51.7% respectively. Maintain BUY with a 6-mth price target of $1.30 (implied 2-yr average dividend yield of 5%).
From Singpost website
Strong 8.5% revenue growth to S$105M
SingPost maintained its quarterly growth momentum for revenue in the first quarter of FY2006/07, recording an 8.5% growth.Revenue rose from S$96.8 million to S$105.1 million, making it the first time theGroup crossed the S$100.0 million mark in its first quarter performances since its listing in 2003.
Mail revenue for the quarter grew 5.4% or S$4.2 million, from S$78.2 million toS$82.4 million, on the back of improved performances by all business lines namely domestic mail, international mail, hybrid mail and philatelic. Logistics revenue rose 11.0% from S$13.5 million to S$15.0 million, due to higher contributions from
Said Mr Lau Boon Tuan, Group Chief Executive Officer of SingPost: "Our core businesses continued to perform well in the first quarter, sustaining the growth momentum achieved over the past quarters, in spite of challenging conditions which include continued declines in public mail volumes and pricing pressure in agency/bill presentment services."
Net profit grew 5.0% to S$31M
As a result of the improved business performance, the Group achieved an operating profit growth of 8.8% from S$36.2 million in the first quarter last year to S$39.4 million.
Net finance costs increased 91.4% to S$2.4 million due to higher interest expenses as a result of the higher interest rate environment and higher borrowings. Interest income was also lower, along with the reduced cash holdings.
Despite lower contributions from associate and JVs and higher net finance costs, net profit grew 5.0% from S$29.5 million to S$30.9 million in the first quarter.
Focus on execution excellence and extending regional reach
SingPost will continue to drive growth in its core businesses by pursuing and implementing initiatives in direct mail, mailroom management,
Added Mr Lau Boon Tuan: "While we continue to grow our business and to seek new revenue streams, we will also focus on execution excellence to maintain our growth momentum. Cost management and productivity improvements will receive heightened focus, to improve our operating leverage. We will concurrently extend our regional reach by leveraging on our core competencies and existing businesses in the region."
The Group is extending its regional reach with initiatives to roll out the hybrid mail and vPOST businesses into the regional markets. Its hybrid mail business, under its subsidiary, DataPost Pte Ltd, has set up printing facilities in the Philippines and Malaysia. SingPost is also tying up with key partners in the region for online shopping, through its internet portal, vPOST.
Q1 dividend of 1.25 cents per share
The Group’s cashflow generation remained robust. Net cash inflow from operating activities amounted to S$36.5 million in the first quarter, compared to S$35.8 million for the previous year.
SingPost’s Board of Directors has declared an interim quarterly dividend of 1.25 cents per ordinary share (tax exempt one-tier), payable on 31 August 2006.
Quite a average quarter, but they delivered the min quarterly dividends.Now 25% of revenue comes from other biz outside mail.March next year, they would loose this monopoly.Quite impress with the JAMES advertisments, think it will make $$.
Re-thinking my position with this counter.Need to find out more about its JVs.
Moving into the property transaction business
SingPost and ERA Realty Network of Hersing Corporation have signed an agreement to offer a new service to customers.
This service will initially be offered at three of SingPost’s branches, namely Ang Mo Kio Central Post Office, Marine Parade Post Office and Toa Payoh Central Post Office from 16 Oct 06 (SingPost currently has 62 branches). A dedicated team of service staff from ERA Realty Network will be stationed at these post offices to assist customers with enquiries and property transactions.
We view this partnership positively
More importantly, this partnership reinforces SingPost’s diversification strategy to leverage its wide retail network to offer more value-added products and services. We can expect SingPost to announce more of such similar initiatives in future.
Market concerns are unwarranted.
The other concern of market players is that the exclusive postal licence will expire on 31 Mar 07. Our view is that other players are unlikely to enter into a market which is relatively small, and compete with SingPost which has an elaborate postal infrastructure setup. Hence, we expect minimal impact on postal earnings upon expiry of the exclusive licence.
Divestment of non-core assets progressing.
SingPost remains a BUY.
2QFY07 : Financial services remains the star growth segment
SingPost reported 2QFY07 net profit of S$36.1m. Underlying net profit of S$31.3m, which excludes the S$4.8m gain on sale of a non-core property, was up 4% yoy, and in line with expectations.
Revenue rose 3.5% yoy to S$106.6m.
Retail segment drove operating profit expansion.
Robust cashflow generation.
Although SingPost’s net debt to equity ratio of 1.7x may appear high, its interest coverage of 16.9s is at an acceptable level.
Dividend yield remains high.
With regards to the 31 Mar 07 expiry of the exclusive right of SingPost for Basic Mail Services (letters and postcards), SingPost management sees itself as well positioned to address the challenges of postal deregulation.
We have raised our FY07 net profit forecast by 4.7% to S$134m primarily to factor in the one-off gains from property sale. Our FY08 and FY09 net profit forecasts have also been finetuned.
Margins Going Upside
Improved margins and healthy cash flow. Singpost saw its turnover increase by 3.5% y-o-y to S$106.6m and underlying net profit by 4% y-o-y to S$31.3m. Including the exceptional income of S$4.8m from the sale of property, net profit jumped 20% y-o-y to S$36.1m. Underlying operating margins have improved significantly to 37.1% in 2Q07 from 35.4% in 2Q06 due to strong focus on managing operating costs. Robust cash flow from operations enabled the company to pre-pay S$20m out of S$60m term-loan and declare an interim dividend of 1.25 cents per share.
Growth Initiatives paying well. We expect Singpost to witness robust growth in the new business segments each successive year. Operating profit from retail segment grew 66% y-o-y to S$2.3m while profit from logistic segment grew 14% y-o-y to S$2.4m with both segments registering significant improvement in margins. In this quarter, Singpost entered into a new space of real-estate services by tying up with a property agency that should keep the momentum going on for the retail segment. With in the mail segment, public mail volume continued to decline that was more than offset by growth in direct mail and international mail volume.
Factored the impact of postal liberalization We maintain our earnings forecast for Singpost, with our base-case scenario of Singpost losing 15% market share (-S$30m in revenue) in Basic Mail Services (BMS) by 2011 as a result of postal liberalization. The basecase scenario assumes that new players would enter in the upstream activity of mail collection and target business customers in selected coverage area. Our best and worst-case scenarios assume Singpost losing 5% and 30%(-$60m in revenue) market share in BMS respectively. Our earlier report on Singpost dated 09-Oct, provides details of postal liberalization and its potential impact on Singpost. We expect a clear picture about liberalization to emerge in the beginning of 2007 when IDA is expected to issue licenses to different players. Relevance: Reiterate our BUY recommendation for Singpost at 1-year DCF (WACC 6%, terminal growth rate 1%) derived target price of S$1.12 that translates to a dividend yield of 5.5%. Technical Analysis BUY on rising momentum – SingPost’s share price has reached close to its bottom with limited downside risk. We expect a target of S$1.11 and a holding period of 2-3 months with an entry range between S$0.985 –S$1.00. Indicators signal a bottom reversal – The %D Stochastics reversed turning up from its over-sold region. Although the MACD shows a continual down trend, we believe that the bottom for Singapore is at around S$0.985. If the trend breaches below its support levels at S$0.975, we could see support at S$0.93, our previous downside target.
BUY on rising momentum – SingPost’s share price has reached close to its bottom with limited downside risk. We expect a target of S$1.11 and a holding period of 2-3 months with an entry range between S$0.985 –S$1.00.
Indicators signal a bottom reversal – The %D Stochastics reversed turning up from its over-sold region. Although the MACD shows a continual down trend, we believe that the bottom for Singapore is at around S$0.985. If the trend breaches below its support levels at S$0.975, we could see support at S$0.93, our previous downside target.
Extracts fm Lim and Tan report dated 1-Nov-06, More Patience Needed
More Patience Needed
Interesting! Capital Grp sold down SingPost in B/Oct and now they buy back! Extracts fm SGX Announcement, >> PART I 1. Date of notice to issuer * 31-10-2006 2. Name of Substantial Shareholder * The Capital Group Companies, Inc. >> PART III 1. Date of change of Shareholding 30-10-2006 2. The change in the percentage level From 10.8857 % To 11.1848 % 3. Circumstance(s) giving rise to the interest or change in interest : Shares were purchased through open market transactions at shareholder discretion es4. A statement of whether the change in the percentage level is the result of a transaction or a series of transactions: Shares were purchased through a series of transactions from 27 October 2006 thru 30 October 2006
>> PART IV No. of shares held before the change : 208,469,000 As a percentage of issued share capital : 10.8857 %No. of shares held after the change : 214,216,000 As a percentage of issued share capital : 11.1848 %
Extracts fm SGX Announcement dated 17-Nov-06,
Singapore Post Revises Postage Rates
Earnings growth from price hike
Postage hike in 20g weight-step for domestic and international mail.
Singpost to charge consumers more without much revenue leakage
FY08 EPS to increase by 4% to 7.6 cents from 7.3 cents.
Rate hike to mitigate higher operating costs
First domestic postage rate revision after 11 years.
International postage rate up as much as 57%.
Valuation and recommendation
Forecasts lifted to reflect revised rates.
Channel NewsAsia, 22 November 2006 1938 hrs
Brokerages upgrade outlook for SingPost
Market analysts are starting to give SingPost a stamp of approval. After months of selling pressure on the counter, some are now calling it a hot stock to watch. The upgrades were quick to come after SingPost announced a rise in postage rates last week. Just a month ago, SingPost shares took a beating on news that it would lose its monopoly licence next March. But in the last few days, the counter has staged a sharp turnaround and is now trading at S$1.10, its highest level in three months. Brokerages are revising their outlook, with UOB Kay Hian calling for a higher target price of $1.31. The positive sentiment was largely driven by its postal rate hikes for domestic and international mail. Analysts say this will help boost earnings. Sachin Mittal, Analyst, DBS Vickers Securities, said: "I've increased from $1.12 to $1.16. The hike in the prices will translate to a 10 percent increase in the public mail segment and the international letters segment. This will approximately add about 5 to 6 million dollars to annual revenues next year. DBS Vickers upped its target price from S$1.12 to S$1.16, on the view that earnings per share will rise 4 percent to 7.6 cents. The bullish projection takes into account, the prospect of new competitors entering the field next March. At an estimated worth of S$200 million, analysts believe that the basic mail services market is too small to attract large global players. But they say, small local players may be interested in the small margins offered by the corporate mail services sector. Mr Mittal said: "They've been preparing for the opening of the sector. There will be some competition, there will be some market share in the basic mail segment, which new players will likely take away. But it won't be much. A maximum of 15 percent of the basic mail segment within 5 years, which means the process of market share loss will be very gradual, and very limited." The positive outlook on SingPost is also supported by its efforts to diversify. SingPost has been active in this area - even diversifying into retail financial services, as a distributor of Prudential unit trusts and insurance policies. This sector now only accounts for less than 10 percent of revenue, but DBS Vickers sees it as the fastest-growing sector for SingPost, and expects 11 percent growth year-on-year for the next 5 years. On Wednesday, SingPost shares rose 1.9 percent to S$1.10, with over 20 million shares changing hands.
Extracted from Singpost 3Q Results releaseo Q3 revenue grew 3.5%
o Net profit rose 4.0%
announced its unaudited results for the third quarter and nine months ended 31
December 2006.Q3 revenue grew 3.5% to S$111.8M
Q3 revenue grew 3.5% to S$111.8M
The Group registered a 3.5% growth in its revenue for the third quarter, from
S$108.0 million to S$111.8 million, underpinned by improved contributions from all business segments.
Said Mr Lau Boon Tuan, Group CEO of SingPost: "In the third quarter, we further
Added Mr Lau: "We also continued to explore opportunities for expansion in the
region, focusing on our core competencies. In this connection, we signed a
collaboration agreement with Pos Indonesia to explore working on four areas namely channeling services, remittances, logistics and direct mail."
Hybrid mail operations, under subsidiary DataPost, is already operating in Malaysia and the Philippines. It recently expanded its facility in Malaysia and is looking to set up similar facilities in two other regional markets.
During the third quarter, the Infocomm Development Authority (IDA) approved an increase in postage rates for domestic mail and international airmail effective 18 December 2006.
Net profit rose 4.0% to S$34.1M
With its focus on cost management and quality growth, operating profit margins for the Group in the third quarter remained firm.
Operating profit for the Group increased by 6.0% from S$40.8 million to S$43.3
million. Mail operating profit rose 3.4% from S$33.3 million to S$34.4 million while Logistics posted a 9.0% increase in operating profit from S$2.9 million to S$3.2 million. Retail operating profit grew 25.3% from S$2.2 million to S$2.7 million.
Finance expenses increased 24.8% from S$2.1 million to S$2.7 million due to higher borrowings and higher interest rates.
Poised to compete in a liberalised basic mail services market
With the impending expiry of its monopoly in the basic mail services market,
SingPost is confident that it is well-positioned to compete when the market is
The Group started preparing for the liberalisation upon its listing in 2003, by
enhancing its core business and leveraging its retail and distribution network for growth. These strategies which include growing the mail business and diversifying into financial services, have strengthened the Group and put it in good stead to compete in a deregulated market.
Said Mr Lau Boon Tuan: "We have been making good progress in our efforts to not only grow our core business and leverage our retail network, but also extend our core competencies and businesses into the region. We will continue to look for opportunities for expansion."
Cashflow and dividends
The Group’s cashflow generation remained robust. Net cash inflow from operating activities amounted to S$122.6 million in the nine months of FY2006/07 compared to S$104.6 million in the corresponding period last year.
SingPost’s Board of Directors has declared an interim dividend of 1.25 cents per
ordinary share, payable on 28 February 2007.
Comments :Steady dividends as usual. Profit for 9 months increased 11% from last year.Hope to get extra div than the usual 5c.Share priced rose up to $1.15. At 5c and share price of $1.15, div yield is 4.3%