SingPost

SingPost: 1QFY15 net profit rose 5.1% to $39.2m while revenue rose 4.8% to $210.9m, driven by 7.4% increase in mail revenue ($123.2m) on the back of increased ecommerce related shipments and higher one-off corporate postings relating to the Personal Data Protection Act. Logistics revenue was 4.1% higher at $97.6m, from contributions by ecommerce activities under Quantium Solutions (parcel business) and Lock+Store (self-storage business). As traditional mail wanes, the SingPost story is increasingly evident of one which proxies ecommerce growth. In May’14, SingPost agreed with Alibaba for a JV to create an international ecommerce logistics platform. SingPost had also acquired The Store House (self-storage business in HK) and F.S. Mackenzie, a UK-based freight forwarder, to boost its ecommerce capabilities. SingPost has committed $100m over 3 years beginning FY14 to upgrade postal infrastructure and improve service quality and productivity in Singapore. SingPost is trading at 23.6x annualized 1QFY15 P/E, and 4.5x P/B. Interim DPS of 1.25¢ maintained.