SingPost: Key takeaways from Chairman Simon Israel at AGM include that future dividends, M&A integration and goodwill impairment could be tested.
1) Board highlighted that dividend needs to be reviewed, so the 7¢ dividend could be at risk, as more investment might be needed
2) On M&A, the focus will be on integration, and how it boosts bottom line. 3QFY3/17, a peak quarter for ecommerce, will be key to watch
3) Lastly, goodwill impairment cannot be ruled out. If acquisitions cannot deliver, there will be no hesitation to write down goodwill.
Maybank KE has Sell call on SingPost with TP of $1.29