Tuesday, July 31, 2012
Sing Post: 1QFYMar13 results, with bottom line weaker yoy, but still above Bloomberg consensus. Revenue grew 6.5% to $151.6m, driven by improved performances by the business segments. Mail revenue increased 3.7% to $100.9m, as growth in int’l mail and first time consolidation of Novation Solutions offset the decline in domestic mail contributions. Logistics revenue was up 11.5% to $57.1m, with increased contributions from e-fulfillment activities in Quantium Solutions and Speedpost. In Retail, revenue increased 12.4% to $18.6m with continued growth in fiancnial services and online store Clout Shoppe. Rental and property-related income declined by 3.1% to $10.3m with lower rental income. Net profit was $38.1m, -2.9% yoy, as total expenses increased at a faster rate than revenue growth, as the Group continued to invest, while continuing to face pressure from the declining high margin domestic mail business. Mgt says it will continue to invest into ppl, technology and operations, as it scales the business in Spore and in the region. Notes overseas contribution is growing and now accounts for >15% of revenue, up from 12% last yr. Notes while outlook remains challenging, its transformation program is gaining good traction. The co maintained its interim quarterly div of 1.25cts. Together with an expected 2.5cts final div, this translates to a yield of 6%. The stock trades at 14.7x P/E.