SingPost

SingPost: weak 4QFYMar12 results, below consensus expectations. Revenue at $145.9m, +3.1% yoy, underpinned by growth in Logistics (higher Speedpost contributions, vPOST shipping business) and Retail (increased contributions from financial services, retail pdts and online store), while Mail revenue was steady. But net profit at $30.6m, -17.4% yoy, as expenses across the board rose faster than revenue. In particular, there was higher depreciation following an increase in investments, and lack of reversal of impairment charge for two properties ($2.5m) from the previous yr. Mgt notes the Group is seeing increasing challenges in the postal industry and operating environment, and is embarking on a transformation program. It will focus on building new revenue contributors in the digital services and e-commerce businesses, as well as pusuing growth in regional logistics and e-fulfilment. The $350m raised from the Perpetual Securities back in Mar ’12 will be used to fund the anticipated capex and working cap requirements. The group declared 2.5cts final div, unchg yoy, bringing full yr div to 6.25cts. The stock trades at 6.1% yield, 13.8x P/E, 2.9x P/B.