Singapore Post

Singapore Post: Hotly featured in a news coverage of the increasingly popular trend towards e-commerce in Singapore, the supply chain and logistics provider has seen solid growth in e-commerce-related volume from clients across Asia-Pacific. In a bid to becoming a regional leader in e-commerce logistics and fulfilment, Sing Post has been investing in the segment, including cross-border transport, warehousing, and spending capital on mail-sorting machines. The group has expanded its services to include storage and fulfilment of online orders. In FY13, e-commerce-related services accounted for 26% of Sing Post's revenue, which is poised to gain traction over the next four years at a compounded annual growth of 29%, according to market watchers. Market Insight remains bullish on Sing Post, which is currently in our model Growth portfolio. Backed by a net cash hoard of $483m, and its dream partnership with Alibaba, we are hopeful that Sing Post would now be able to rapidly expand its e-commerce business in Southeast Asia, through the acquisition of the smaller logistics players in the region, and thereby achieve better-than-expected earnings growth. At $1.75, Sing Post trades at 24.3x forward P/E and 4.8x P/B.