SingPost - Jialat

Singapore Post just released their Q2 results. revenues increased by 22.3% whereas net profits dropped by 27.9% due to higher expenses incurred due to Logistics Hub, redevelopment of SPC Mall and decline in domestic mail. dividend is also cut from 1.5 cents to 1 cents forthe quarter.

The combine US subsidiaries Jagged Peak & TradeGlobal incurred an operating loss  of $6.8m for the quarter.

A lot of people associated their optimism for Alibaba with SingPost.I think this might be misplaced.Alibaba business model need also a few addtional servers to ram up their business.SingPost is just the workhorse to ensure that the nitty & gritty role of ensuring  parcels get delivered to the end customer.It is a necessary part of the Alibaba puzzle but not the profitable part of it. Alibaba invested in SingPost to have control over SingPost solely to be their workhouse in SE asia.

I divested at close to $2 and never regretted it.