pretty decent quarterly results but at current prices, valuation looks to be too expensive with pe of 27.4. also declining contribution from its mail business will continue to weigh on its growth strategy. full article below.
http://www.investark.com/Analysis17singpost3q15.html
Hi yohowslife,
Interesting write up you have on Singpost. Yes I agree at 27.4x P/E, its quite high. At 27.4x P/E, ppl are expecting Singpost to grow its earnings a lot (about 80% in 4 - 5 years) to match its 15.4x P/E. So the question as a value investor: Is this valuation awarded by Mr. Market undervaluing /fair /overvaluing the company?
In this case, my personal opinion is that Mr. market has overvalued Singpost. For Singpost to grow 80% earnings in 5 years on the story of e-commerce growth is simply not possible. In addition, its mall business is going to be challenged greatly in the paya lebar area. LKH and UOL have recently added new malls at Paya Lebar area. This increases the no of malls in Paya Lebar from 3* to 5.
*The first 3 malls (including Singpost's) are all old and run down. Singpost was the dominant kid in the block because it had a NTUC outlet and Kopitiam (the only food court in the area). Paya Lebar square now has food outlets, Giant and a food court; thus is a big challenger to Singpost.
Wont be such a pretty picture when ali baba hype is over. Grossly overvalued, time to move on.
-- via Xperia Z1 with tapatalk
With a non-controlling stake, SingPost objective is to complete its offering to companies interested on e-commerce market in Indonesia. E-commerce is a "hot" sector in Indonesia now, with great potential...
(not vested)
SingPost forms JV to tap e-commerce market in Indonesia
SINGAPORE (March 9): Singapore Post ( Financial Dashboard) has formed a joint venture with PT Trikomsel Oke Tbk, which sells mobile phones in Indonesia, to tap the e-commerce market in Southeast Asia's biggest economy.
The postal group will own 33% of the new entity, while PT Trikomsel will own the rest, both companies said in a joint statement today.
SingPost's initial investment in the joint venture is US$1.1 million ($1.5 million).
"The partnership’s strategic objective is to become the preferred go-to-market partner for brands and merchants looking to enter the growing Indonesian e-commerce market," they said.
It will do so by providing "turn-key omni-channel e-commerce and logistics solutions" that can be customized for leading global companies and established brands in Indonesia.
...
http://www.theedgemarkets.com/sg/article...-indonesia
looks like the possible synergy with ali baba is after all just hoohah.
hope it becomes cheap enough to stock up.
(13-05-2015, 03:01 PM)BlueKelah Wrote: [ -> ]looks like the possible synergy with ali baba is after all just hoohah.
hope it becomes cheap enough to stock up.
Yeah, my recent purchase were shipped through POS Malaysia International Hub from Guangzhou. SingPost only do the last leg.
(13-05-2015, 03:01 PM)BlueKelah Wrote: [ -> ]looks like the possible synergy with ali baba is after all just hoohah.
hope it becomes cheap enough to stock up.
I guess, without the Alibaba story, the share price will never reach the current adjusted level
(not vested)
The controller is in China where they produce and sell the products. They will continue to choose Malaysia ( No.1 supporter of China in Asean) for Indonesia market, I suppose.
SingPost scores as first logistics partner of Alibaba Merchant Delivery Scheme
http://www.businesstimes.com.sg/companie...ery-scheme
SingPost reinvents itself. They saw things were changing before they were pushed to the cliff. Good move by CEO Wolfgang Baier and his team.
http://www.cnbc.com/id/102689068
"SingPost is pitching itself as a conduit to the Asian consumer, particularly in countries like Indonesia, Vietnam and Malaysia. With its swelling population of young and mobile consumers with newly disposable incomes, the region offers a rich seam of new opportunities."
Please use more of Singpost's services, shareholders will thank you. lol!
Sing Post needs the transformation for survivor. This transformation is essential so unlikely to change growth profile of the company.
Alibaba is a hype and share price has been on a quiet slide since peaking above $2.
(19-05-2015, 08:36 PM)kelvesy Wrote: [ -> ]SingPost scores as first logistics partner of Alibaba Merchant Delivery Scheme
http://www.businesstimes.com.sg/companie...ery-scheme
SingPost reinvents itself. They saw things were changing before they were pushed to the cliff. Good move by CEO Wolfgang Baier and his team.
http://www.cnbc.com/id/102689068
"SingPost is pitching itself as a conduit to the Asian consumer, particularly in countries like Indonesia, Vietnam and Malaysia. With its swelling population of young and mobile consumers with newly disposable incomes, the region offers a rich seam of new opportunities."
Please use more of Singpost's services, shareholders will thank you. lol!