In my opinion, it is still on a early stage of turning around their total net income.
The 4th quarter result has shown great improvement of Net profit 23,946m as compare to last year Net Loss of 69m.
Total dividend of 3.5 cents is still almost half from the golden years of 7 cents .
It is quite surprising that they are declaring a 2 cents dividend for final dividend. Shareholder would be happy for the increase of dividend being declared.
Full year ended 31 March 2018.
Revenue for the year increased 8.6 per cent to S$1.46 billion on growth in eCommerce-related activities across the Postal and Logistics segments.
Net profit attributable to equity holders rose 278.4 per cent to S$126.4 million, largely due to the absence of one-off impairment charges. Excluding exceptional items, underlying net profit declined 9.2 per cent to S$105.0 million. While the eCommerce and Property segments saw improved performance, Logistics and Postal operating profits fell.
For the fourth quarter ended 31 March 2018, revenue grew 13.5 per cent to S$367.5 million. Net profit attributable to equity holders improved to S$23.9 million, from a loss of S$65.2 million, which reflected impairment charges in exceptional items. Operating profit, excluding exceptional items improved 18.0 per cent. Lower contributions from associates and increased tax provision however resulted in underlying net profit for the quarter declining 28.6 per cent to S$15.3 million.
Revenue grows on higher eCommerce-related activities
Postal revenue rose 15.0 per cent driven by higher eCommerce deliveries. Operating profit declined 4.0 per cent with a change in margin mix.
Logistics revenue increased 4.3 per cent across the Group, driven by growth in last mile eCommerce delivery volumes, as well as increased freight forwarding volumes. Operating profit declined as margins were impacted by continued investment in the business, and pricing pressures in North Asia.
Revenue of the eCommerce segment was stable despite the loss of two major customers the prior year, and accelerated by 15.7 per cent in the fourth quarter. Operating loss was reduced by more than 50 per cent on improved performance due to TradeGlobal’s turnaround business plan.
Rental and property-related income increased 29.9 per cent on higher rental income from the SingPost Centre retail mall. Committed occupancy rose to 95.6 per cent.
Postal revenue rose 15.0 per cent driven by higher eCommerce deliveries. Operating profit declined 4.0 per cent with a change in margin mix.
Logistics revenue increased 4.3 per cent across the Group, driven by growth in last mile eCommerce delivery volumes, as well as increased freight forwarding volumes. Operating profit declined as margins were impacted by continued investment in the business, and pricing pressures in North Asia.
Revenue of the eCommerce segment was stable despite the loss of two major customers the prior year, and accelerated by 15.7 per cent in the fourth quarter. Operating loss was reduced by more than 50 per cent on improved performance due to TradeGlobal’s turnaround business plan.
Rental and property-related income increased 29.9 per cent on higher rental income from the SingPost Centre retail mall. Committed occupancy rose to 95.6 per cent.
Free cash flow improves significantly
For the full year ended 31 March 2018, free cash flow grew to S$136.1 million, from S$0.3 million the previous year. This was due to reduced capital expenditure, following the completion of the Regional eCommerce Logistics Hub and SingPost Centre retail mall.
For the full year ended 31 March 2018, free cash flow grew to S$136.1 million, from S$0.3 million the previous year. This was due to reduced capital expenditure, following the completion of the Regional eCommerce Logistics Hub and SingPost Centre retail mall.
Final dividend
For the fourth quarter of FY2017/18, the Board of Directors is recommending a final dividend of 2.0 cents per ordinary share (tax exempt one-tier). This would bring the annual dividend for the financial year to 3.5 cents per share, representing a payout ratio of 76 per cent of underlying net profit. The proposed dividend is subject to shareholders’ approval at the Annual General Meeting in July 2018.
Mr Coutts added: “We continue to execute on our transformation and build on our partnership with Alibaba in eCommerce. We are integrating and scaling our eCommerce businesses in the US and Southeast Asia, as well as the rest of our overseas operations, and optimising the cost structure of the SingPost Group.”
For the fourth quarter of FY2017/18, the Board of Directors is recommending a final dividend of 2.0 cents per ordinary share (tax exempt one-tier). This would bring the annual dividend for the financial year to 3.5 cents per share, representing a payout ratio of 76 per cent of underlying net profit. The proposed dividend is subject to shareholders’ approval at the Annual General Meeting in July 2018.
Mr Coutts added: “We continue to execute on our transformation and build on our partnership with Alibaba in eCommerce. We are integrating and scaling our eCommerce businesses in the US and Southeast Asia, as well as the rest of our overseas operations, and optimising the cost structure of the SingPost Group.”
(https://www.singpost.com/about-us/news-releases/singpost-full-year-net-profit-2784-cent-s1264-million)
From TA point of view, it has managed to cross over $1.35 which is the immediate resistance. The volume is not very impressive as compare to previous wide candlestick up bar as reflected on the chart.
Two major overhead Resistance which is $1.40 & $1.42. It would be quite a big challenge to re-attempt these two major Resistance.
Not a call to buy or sell.
Please do your own due diligence.
Singapore Post Limited provides postal, e-commerce logistics, and retail services in Singapore and internationally. The company operates through three segments: Postal, Logistics, and eCommerce. The Postal segment offers services for collecting, sorting, transporting, and distributing domestic and international mail, as well as sells philatelic products. Its international mail service includes handling of incoming and outgoing international mail. This segment also provides ePost hybrid mail services, which integrate electronic data communication with traditional mail; and agency services and financial services. The Logistics segment offers a range of logistics solutions, including freight, warehousing, domestic and international distribution, and delivery services. Its services include e-commerce logistics, warehousing, fulfilment and distribution, and other value-added services; and parcel delivery, freight forwarding, and self-storage solutions and management services. The eCommerce segment provides front-end e-commerce solutions. The company is also involved in the online sale of luxury products; provision of management and consultancy services to related entities, as well as business mail solutions and distribution of mail, and global sale and marketing services; and real estate activities. In addition, it provides electronic platform and recyclable lockers for merchandise distribution, as well as customs brokerage services; and acts as a trading company and purchases organization for ocean freight services. Further, the company is involved in the courier activities other than national post activities; and provision of freight collections transshipments, logistics management, and aviation services. Singapore Post Limited was founded in 1819 and is headquartered in Singapore.
Please do your own due diligence.
Singapore Post Limited provides postal, e-commerce logistics, and retail services in Singapore and internationally. The company operates through three segments: Postal, Logistics, and eCommerce. The Postal segment offers services for collecting, sorting, transporting, and distributing domestic and international mail, as well as sells philatelic products. Its international mail service includes handling of incoming and outgoing international mail. This segment also provides ePost hybrid mail services, which integrate electronic data communication with traditional mail; and agency services and financial services. The Logistics segment offers a range of logistics solutions, including freight, warehousing, domestic and international distribution, and delivery services. Its services include e-commerce logistics, warehousing, fulfilment and distribution, and other value-added services; and parcel delivery, freight forwarding, and self-storage solutions and management services. The eCommerce segment provides front-end e-commerce solutions. The company is also involved in the online sale of luxury products; provision of management and consultancy services to related entities, as well as business mail solutions and distribution of mail, and global sale and marketing services; and real estate activities. In addition, it provides electronic platform and recyclable lockers for merchandise distribution, as well as customs brokerage services; and acts as a trading company and purchases organization for ocean freight services. Further, the company is involved in the courier activities other than national post activities; and provision of freight collections transshipments, logistics management, and aviation services. Singapore Post Limited was founded in 1819 and is headquartered in Singapore.