Sing Post

Sing Post: UOBK downgrades to Hold, with TP $1.73. Believes the stock is fairly valued at 24.4x FY16e P/E, after the recent outperformance. Tips entry price at $1.50. Nevertheless the house acknowledges that Sing Post's e-commerce logistics story is in the making with a low cost platform to attract businesses and consumers alike. Meanwhile, it waits for more clarity on the proposed collaboration with Alibaba. Alibaba's proposed invmt of $312.5m for a 10.35% stake in Sing Post has no doubt raised questions about the likelihood that it will take a larger share eventually, but notes that under the Postal Services Act, Alibaba would need to seek prior written approval from the IDA if it crosses the 12% and 30% shareholding threshold in Sing Post.