Singapore Post

Singapore Post: 2QFY2014 net profit attributable to shareholders rose 8.5% y/y to $35.7m as revenue spiked 32.6% y/y. Mail revenue, which was up 13.4% saw good growth in volumes of e-commerce packages both locally and internationally, as hybrid mail also saw higher contributions from Datapost and Novation Solutions. Logistics revenue shot up 79.1% on organic and inorganic contributions, with Quantium Solutions showing record growth, on top of contributions from General Storage Company and Famous Holdings which were acquired in Jan and Feb ‘13 respectively. Excluding acquisitions, logistics revenue was up 12.1%. Expenses increased 34.9% y/y to$171.3m mainly attributable to the business model change to a diversified group and growth in lower margin businesses. On the back of this, the Group has been implementing cost management initiatives. Volume-related expenses were up in line with strong international traffic, while finance expenses fell as the Group hard repaid the $300m bond in Apr 2013. The Board declared an interim quarterly dividend of 1.25¢ payable on 29 Nov 2013, which translates to forward yield of 4.8%. NAV is 35.44 cents