Singapore Post

Singapore Post: OCBC maintains Hold with $1.23 TP. House note that in recent mths, SingPost has been acquiring stakes in companies to build its non-mail businesses – it completed the 100% acquisition of General Storage Company (GSC) in end Jan for $37m and the 62.5% acquisition of Famous Holdings in end Feb this yr for $60m. House see synergies with the group’s logistics and e-commerce businesses, but note that these acquisitions remain on a relatively small scale as we await news of larger acquisitions. Meanwhile, the stock has been trading in a range of $1.18-S$1.23 since house downgraded it to HOLD on 28 Jan. Like SingPost’s stable operating cash flows and consistent dividends, but see few re-rating catalysts for now.