ValueBuddies.com : Value Investing Forum - Singapore, Hong Kong, U.S.

Hmm... Interesting. I always thought that the drone delivery isn't applicable in cities with higher population density? Do Singapore need the technology? Looking forward to see how it goes... Anyway, a good trial...

(not vested)

SINGPOST COLLABORATES WITH IDA TO DEVELOP FIRST DRONE
FOR MAIL DELIVERY
Singapore, 8 October, 2015 – Singapore Post (“SingPost”) today announced a joint
development with the Infocomm Development Authority of Singapore (IDA) for a
Unmanned Aerial Vehicle (UAV, also known as drone). A last mile mail and packet
drone delivery trial was successfully completed between Lorong Halus and Pulau Ubin.
The drone which was built upon the Pixhawk Steadidrone platform was by IDA Labs to
meet the new conceptual delivery platform from SingPost, and tailored for use in a
challenging environment like Singapore. This is the first time in the world a postal
service has successfully used an UAV for point-to-point recipient-authenticated mail
delivery.
...
http://infopub.sgx.com/FileOpen/Press%20...eID=372573

SingPost has been transformed to a global player, instead of only a regional one...

Singpost to acquire majority stake in US e-commerce logistics provider Jagged Peak for $22.5 mil

SINGAPORE (Oct 9): Singapore Post ( Valuation: 1.50, Fundamental: 2.70) has entered into an agreement to acquire a 71.1% stake in Jagged Peak, Inc for US$15.8 million ($22.5 million).

The acquisition takes Singpost a step close to building an end-to-end e-commerce logistics network and technology platform.

Singpost saus Jagged Peak’s proprietary e-commerce logistics platform, used by more than 20 warehousing facilities across the US, Canada and Europe, will enable Singpost to become a global e-commerce logistics provider for high-velocity consumer products.

The proposed acquisition will enable SingPost to support customers globally and move products more efficiently to consumers by implementing Jagged Peak’s Flexnet technology.

Singpost also intends to invest in Jagged Peak’s e-commerce logistics infrastructure, processes and technology to help customers maximise their business potential globally.
...
http://www.theedgemarkets.com/sg/article...ak-225-mil

Will this happen in Singapore?

http://www.valuebuddies.com/thread-5133-...#pid121203

(13-11-2014, 03:06 PM)flinger Wrote: [ -> ]I would have to disagree with the statement about Amazon direct shopping.

Amazon provides free shipping to Singapore...but not on many of the products. A large number of products are not allowed to be shipped to foreign addresses. They can only ship to U.S. addresses.

This is where Singpost comes along with the multiple online stores in U.S. that sell items that are not sold by Amazon.

(13-11-2014, 01:35 PM)specuvestor Wrote: [ -> ]I agree with CF. Singpost don't have the shopfront. Their pathetic singpost shopping mailer is a disgrace. With Amazon shipping direct to Singapore, Vpost in US is virtually dead. Their strategy should be to partner with the retailers rather than try to partner with the consumer who are more interested in short term rather than long term value propositions.

But they can conceivably have a win-win deal with BABA for South East Asia delivery.

Just to add my two cents. Amazon still is horrible. They still refuse to ship various things overseas.

My mum requires regular supply of bandages and medication. Some of these stuff is just outright overpriced off the shelves in Singapore. So, I tried to buy off amazon and I was stopped.... cos they wouldn't ship a roll of bandage overseas. Its not even liquid. 

Vpost is a workable solution and they responded to me quite quickly the last time, when I wanted to order a surface pro 2. Time flies. Arise... surface pro 4. 

I like the self service collection points. It is the best thing ever. Sometimes, just time to pick up from courier. This is really thoughtful! 

Anyway, Amazon is still unfriendly to international shoppers to some extent. I like shopping on ebay more than amazon. Even qoo10 seemed more palatable at times.

Not vested, but looking to enter.

(24-10-2015, 10:33 PM)vesfreq Wrote: [ -> ]

(13-11-2014, 03:06 PM)flinger Wrote: [ -> ]I would have to disagree with the statement about Amazon direct shopping.

Amazon provides free shipping to Singapore...but not on many of the products. A large number of products are not allowed to be shipped to foreign addresses. They can only ship to U.S. addresses.

This is where Singpost comes along with the multiple online stores in U.S. that sell items that are not sold by Amazon.

(13-11-2014, 01:35 PM)specuvestor Wrote: [ -> ]I agree with CF. Singpost don't have the shopfront. Their pathetic singpost shopping mailer is a disgrace. With Amazon shipping direct to Singapore, Vpost in US is virtually dead. Their strategy should be to partner with the retailers rather than try to partner with the consumer who are more interested in short term rather than long term value propositions.

But they can conceivably have a win-win deal with BABA for South East Asia delivery.

Just to add my two cents. Amazon still is horrible. They still refuse to ship various things overseas.

My mum requires regular supply of bandages and medication. Some of these stuff is just outright overpriced off the shelves in Singapore. So, I tried to buy off amazon and I was stopped.... cos they wouldn't ship a roll of bandage overseas. Its not even liquid. 

Vpost is a workable solution and they responded to me quite quickly the last time, when I wanted to order a surface pro 2. Time flies. Arise... surface pro 4. 

I like the self service collection points. It is the best thing ever. Sometimes, just time to pick up from courier. This is really thoughtful! 

Anyway, Amazon is still unfriendly to international shoppers to some extent. I like shopping on ebay more than amazon. Even qoo10 seemed more palatable at times.

Not vested, but looking to enter.

You might find your experience with Amazon outside Singapore quite different.  Perhaps the last legs cost of delivering in Singapore is still not commercially viable creating the poor experience.

SingPost’s new shopping mall to offer e-comm logistics services

The mall, scheduled for completion in 2017,  will be all about ‘O2′ (O-squared), a convergence of shopping offline and online
Artist’s impression of the new retail mall at Singapore Post Centre
Singapore Post Limited (SingPost) has announced its plans to build the country’s first retail mall that offers a complete suite of e-commerce logistics solutions.
Online merchants and brick-and-mortar shops will be housed under one roof. Consumers will have the option of ordering a particular item online in the store, and have more flexibility in choosing delivery or pickup timings.

Quote:“For instance, a consumer could browse in-store, purchase the product and arrange for delivery of the product directly to their home. The consumer could then continue shopping, watch a movie or have a meal in the mall without having to carry bulky shopping bags. The retailer, on the other hand, could save on storage space in the store as fulfillment would be done at the backend of the warehouse,” said SingPost.

The national post carrier expects to spend S$150 million (about US$107 million) in construction costs, “which includes upgrading amenities and the façade for the adjoining office building”, according to an official release.



Image Credit: SingPost

The mall, which is said to have 25,000 sq metres of retail space, is scheduled to be built by mid-2017.
It will be located next to Paya Lebar MRT Station, at the present open concourse in front of the Singapore Post Centre (SPC).
Not only does SingPost acknowledge that there is a “changing retail landscape” in the city-state, the firm also understands that it should cater “to the evolving needs of consumers”.
“SingPost is building a unique and disruptive concept – converging online and offline – to gain maximum customer benefits. With the new retail mall at SPC, consumers can enjoy the best of both worlds – online and offline – while businesses can potentially cut costs and focus on enhancing customer experiences,” said Wolfgang Baier, Group Chief Executive Officer, SingPost.
The company also used this opportunity to distinguish its ‘O2′ strategy from the more popularly-known buzzword O2O, or Online-to-Offline.
While O2 refers to the retail fulfillment of Online to Offline and vice versa, O2O is the other way around: The consumer purchases something online but receives it at the store.

Also Read: Hong Kong’s PopScout wants to reverse the O2O model

Baier said, “The SPC O2 retail concept puts consumers at the heart of this evolution, allowing them to have greater retail options and more convenience.”
SingPost has spent the last few years pulling up its socks and studying the e-commerce game, building POP Stations, which are lockers that will hold online purchases until the customer goes to pick them up, spending S$182 million (about US$130 million) in constructing a regional e-commerce logistics hub and acquiring other companies to grow its operations.
According to a March 2014 article on Tech in Asia, 28 per cent of SingPost’s total revenue comes from e-commerce, which includes delivering goods for businesses.

Also Read: Data answers everything: Freelancer.com’s Willix Halim

“The redevelopment of the retail mall at SPC is part of our efforts to extract maximum value from our property portfolio and support our accelerated transformation from Singapore mail to global e-commerce logistics,” said Lim Ho Kee, Chairman, SingPost.
The new and upcoming mall will have four above-ground levels and one basement, an eight-hall cineplex, SingPost’s flagship post office, retail shops, as well as food and beverage outlets.
The mall will come equipped with three levels of underground car park, according to the same release.

The post SingPost’s new shopping mall to offer e-comm logistics services appeared first on e27.

https://sg.finance.yahoo.com/NEWS/singpo...29701.html

SingPost is really transforming under the young and capable CEO. 

The coming new SingPost building is pretty different from the old one.

(not vested)

Confirm to be a slow death business despite all the initiatives to transform...

Huge jump in turnover due to all the M&A but core earnings remain down relative to same period last yr.

Personally, the gloss over ecomm business has masked the transition needed to survive in a business that is dying globally from the eventual demise of traditional mail.

Caveat Emptor
Odd Lots Vested
GG

(28-10-2015, 03:18 PM)CityFarmer Wrote: [ -> ]SingPost is really transforming under the young and capable CEO. 

The coming new SingPost building is pretty different from the old one.

(not vested)

really?  is it too early to judge?  Personally, lots of hot air but no real substances....

from their latest results (fool.com.sg)
https://www.fool.sg/2015/11/03/singapore...ld-know-2/

The following’s a quick take on Singapore Post’s latest financial figures:

1. Overall revenue for the second quarter leapt 19.4% year on year to $263.2 million.
   
   
2. Profit attributable to shareholders came in at $53.5 million, up 38.5% compared to the same quarter a year ago. The profit increase was largely due to one-off gains from the disposals of Novation Solutions and DataPost.
   
   
3. Underlying profit (which adjusts for one-off items) for the second-quarter of FY15/16, though, was down 4.8% year on on year to $37.5 million.
   
   
4. Diluted earnings per share (EPS) saw a 41.9% rise year on year from 1.62 cents in the second-quarter of FY14/15 to 2.30 cents in the reporting quarter.
   
   
5. For the reporting quarter, cash flow from operations came in at a negative $37.3 million with capital expenditure weighing in at $95.1 million. The hefty capex caused the logistics outfit to turn in $132.4 million in negative free cash flow.  
   
   
6. As of 30 September 2015, the group had $326.6 million in cash and equivalents and borrowings of about $238.8 million. This compares with the $683.4 million in cash and equivalents and borrowings of about $235.5 million a year ago.
   

I like what they are doing to transform the biz but I think the valuation is insane. I had earlier sold my shares @ 2.05-2.10 with valuations @ PE 28 or so.

It's helpful to be associated with Alibaba but the biz models are completely different.

For Jack Ma to expand his biz - essentially (with a touch of triviality) he just needs to buy a couple more servers.

For Singpost to cater to the dirty biz of logistics, they need to buy warehouses, trucks, freighters - all highly CAPEX intensive and carries decent risks. With ROE dragged down by the low-margin logistics biz, coupled with such capex intensive developments and M&A, I will never pay such a high valuation for the firm.