Singapore Post

[natnavi]

I was thinking of owning a part of Singpost; however, after doing a quick look into their latest annual report, I will have to wait and see how well Singpost will do in the near future. At the moment, it looks like Singpost is aggressively expanding into the logistics business.

The mail industry is dying, and the people at the top of Singpost are aware of this, and are trying their very best to overcome this. One good point to note is that Singpost has realized that they need to improve their customer services, and are embarking on ways to do so. They are improving their tracking system, and they are also restructuring their customer service team. Hope it works well.

To circumvent the dying mailing industry, Singpost is acquiring other companies that are related to their core business such as companies dealing with logistics. Revenues under Logistics have grown by more than 3 times in the past 3 years. Profit did not improve that much as it is most likely that the cost is used to acquire more business.

In addition, proof that they are busy expanding, is that earlier this year they have raised $350 million for just this purpose.

Looking in the direction at which the company is moving to, Singpost may end up a logistics company in the future.

(not vested)