SingPost

SingPost: CLSA initiating with a Buy call and TP of $2.50. According to the house, as Asean’s top e-commerce logistics service provider, SingPost has seized the opportunity to diversify its business at the right time. Heavy investment in new technology, infrastructure and systems has served the company well as its traditional mail business struggles amid a declining trend, while an increase in international deliveries, spurred by the growth in e-commerce sales has offset falling domestic-mail volume. Rising incomes and more households with access to the internet have allowed more people to purchase goods online. Coupled with SingPost’s easily scalable online platform, more companies will move their retail operations online, ultimately driving overall sector growth.