SingPost

SingPost: Spending $45m to upgrade its mail sorting infrastructure into an integrated sorting system comprising 16 various machines that can sort letters, packets and publications. The new sorting machines will increase mechanisation rate in the sorting process, thereby reducing human reliance and enhancing accuracy. This should help ease off some of the group’s pressure on labour costs, as the current process of sorting both outgoing international mail and redirected mail are manual. The new sorting machines are part of its $100m investment to upgrade infrastructure, and improve service. The transformation of the sorting centre and the recent introduction of the 24/7 POPStation are part of this commitment. Management notes that upgrading its postal infrastructure will give a higher efficiency rate, and will also prepare the group going forward with fewer letters and more packets. In 2012, SingPost made acquisitions into several regional logistical companies to bolster its non-mail segment, as the group remains focused that the logistics business will be its key driver going forward. Currently, SingPost trades at 4.8% historical yield.