Sing Post

Sing Post: Looking to acquire one of Australia's leading metropolitan small parcel delivery business, Couriers Please (CP) Holdings, for A$95m ($105m), in line with the group's strategy to boost regional e-commerce delivery network. CP Holdings, priced at 34.4x FYJun14 NTA, has extensive national coverage, a low cost network and operates an asset light franchisee model, with depots located primarily in Eastern and Southern Australia, comprising the majority of the Australian delivery market. Post deal, Sing Post’s proforma FYMar14 NTA/share will drop 22% to $0.21, while its EPS will improve 7% to 7.24¢. For 1HFY15, ecommerce contributed 26.9% (1HFY14: 23.8%) of total revenue, growing at a healthy 20% clip. Currently, Sing Post has 22 warehouses across Asia Pacific with area totaling 39,400 sqm. Management intends to continue beefing up its network infrastructure and capabilities via M&A and further capex spends in FY15-16. At $1.92, Singapore Post is valued at 28.1x annualized 1H14 P/E and offers a dividend yield of 3.2%.