I Sold SingPost

I finally decided to sell SingPost after holding it for more than 4 years.I bought it at around $1.15 and have collected 6.25 cents annually these 4 years. As it is, the current price of around $1.98 does not commensurate with its earnings of about 7 cents per annum.Despite all the hype surrounding Alibaba injection of capital into SingPost, we must remember that SingPost is actually not doing ecommerce directly but more the grunt work of delivering ecommerce parcels.Alibaba do not even want to do the logistics portion in China as it is high cost and low margin.I have watch SingPost performance over the last few years and it seems that the net EPS is fairly stagnant despite the transformation underway. The net increase in logistics EPS is barely keeping up with the fall in core business EPS.Right now, PE ratio is about 28 is which pretty high with low NAV value.SingPost Mall is outdated and relatively uncompetitive, to upgrade to compete, capital will need to be spent for AEI.All in all, I reckon it is better to redeploy my fund invested into SingPost into areas of higher returns.

SingPost And Alibaba

SingPost And Alibaba announced a strategic investment by Alibaba Investment Limited into Singpost under which AIL will pay $312.5m for 30m ordinary shares held in treasury and another 190m new shares. Upon completion, Alibaba Investment Limited will command about 10.35% in SingPost. The new shares issued will be at a price of $1.42 which about 8% t the last traded price of $1.54.

I view this as positive for SingPost effort to grow the e-commerce space in SEA with a formidable backer in Alibaba.

SingPost - An unlikely winner todate!

I invested in Singpost about three years ago at an avg price of $1.12 amidst all the gloomy pronouncements of shrinking postal mail volume in face of all the new technology media info transmission. After, CNY and Christmas greeting cards have practically disappeared. Companies and government orgs cut down drastically on sending physical mail updates by offering services that do check online DIY etc. However, I noticed that teenagers will making small purchases over various websites and gotten the packages delivered via the postal system. I do not have a clue how big or important this is going to be for singpost but thought it may be able to make up for the declining postal mail.The recent performance of signpost share price seems to have vindicated my judgment but of course nobody can really tell the future. In the meantime, I have collected close to three years of dividends.So, in the final message, take  conventional wisdom with a grain of salt when it comes to stock investing.

SingPost 3QFY2013

Revenue                                        = $222.6m
Operating Expenses                      = $182.2m
Operating Profit                            = $40.2m
Net Profit                                      = $39.5m

Mail  Revenue                             = $133.2m  (Profit $37.8m)
Logistics Revenue                       = $101.2m    (Profit $6.2m)
Retail Revenue                            = $22.6m    (Profit $2.6m)

Borrowing                                  = $228.1m
EBITDA/Interest                       = 35.2x
Cash & Cash Equiv                   = $362.5m
EPS                                            = 1.867 cents
NAV                                          = 36.43 cents

SingPost 1QFY13/14

Revenue                                        = $201.3m
Underlying Net Profit                   = 36.6m
Operating Profit                            = $48.7m
Net Profit                                      = $38.1m

Mail  Revenue                             = $114.7m  (Profit $36.8m)
Logistics Revenue                       = $93.8m    (Profit $3.3m)
Retail Revenue                            = $20.8m    (Profit $2.8m)
Others                                          = ($27.8m) (Profit $5.6m)

Domestic Mail                             = $62.5m (+3.1%)
International Mail                        = $40.6m (+25.0%)
Hybrid Mail                                 = $10.8m (+57.8%)
Philatelic                                      = $0.7m   (-19.2%)

Borrowing                                  = $227.6m
EBITDA/Interest                       = 32.1X
Cash & Cash Equiv                   = $383.1m
EPS                                            = 1.768 cents
NAV                                          = 35.17 cents

SingPost 4QFY201213

Revenue                                        = $182.5M
Underlying Net Profit                    = 26.8M
Operating Profit                            = $40.8M
Net Profit                                      = $30.6M

Mail  Revenue                             = $115.7M (Profit $34.0M)
Logistics Revenue                       = $75.9M (Profit $0.9M)
Retail Revenue                            = $18.2M (Profit $1.6M)
Others                                          = (Loss $4.275M )

Net Debt                                    = 0.8X
EBITDA/Interest                       = 17.2
Cash & Cash Equiv                   = $617.4M
EPS                                           = 1.183 cents
NAV                                         = 35.29 cents

SingPost Q2FY2012/2013

Revenue                                        = $153.7M
Underlying Net Profit                    = 32.7M
Operating Profit                            = $43.273M
Net Profit                                      = $30.6M

Mail  Revenue                             = $105.5M (Profit $33.1M)
Logistics Revenue                       = $55.3M (Profit $2.3M)
Retail Revenue                            = $17.9M (Profit $3.1M)
Others (Profit)                             = $4.763M

Net Debt                                    = 0.8X
EBITDA/Interest                        = 17.1
EPS                                           = 1.540 cents
NAV                                         = 34.53 cents

SingPost Q1FY2012/2013

Revenue                                      = $151.6M
Underlying Net Profit                   = 36.6M
Net Profit                                    = $38.1M

Mail  Revenue                             = $100.9M (Profit $34.6M)
Logistics Revenue                       = $57.1M (Profit $3.1M)
Retail Revenue                            = $18.6M (Profit $3.6M)
Others (Profit)                             = $7.438M

Net Debt                                    = 0.6X
EBITDA/Interest                        = 18.1
EPS                                           = 1.820 cents
NAV                                         = 34.48 cents

SingPost Q4 FY2011/2012

Results released on 27/4/2012.

Underlying Profit                    = $26.8 M
EPS (Q4 FY2011/2012)         = 1.553
DPU Q3 FY2011/2012           = 2.5 cents
Net Gearing                            = 0.766x
EBITDA to Interest Expenses = 17.2x
Total Liability                           = $770.4M
Borrowing                               = $505.7M
Cash & Cash Equiv                 = $617.4M
Net Assets                               = $659.8M
NAV  (as at 31th Dec 2011)    = 34.93 cents

Domestic Mail                         = $96,370,000
Logistic                                   = $53,959,000
Retail                                       = $18,154,000

SingPost Q3FY2011/2012

Results released on 30/1/2012.

Underlying Profit                    = $38.9M (decreased by 5% over corr quarter in prev year)
EPS (Q3 FY2011/2012)         = 2.2 cents
DPU Q3 FY2011/2012           = 1.25 cents
Net Gearing                            = 0.75x
EBITDA to Interest Expenses = 17.4x
Net Debt                                  = $232.4M
Borrowing                               = $505.7M
Cash & Cash Equiv                 = $273.3M
NAV  (as at 31th Dec 2011)    = 16.31 cents

Domestic Mail                         = $60.3M
Int Mail                                    = $31.8M
Hybrid Mail                             = $4.9M
Philatelic                                  = $1.0M