Broker's Take

Singapore Post | Hold (maintained) Feb 4 close: S$0.95 Target price: S$1.03 CGS-CIMB, Feb 1

Singapore Post's (SingPost's) Q3 net profit rose 15.6 per cent year-on-year (yoy), boosted by a S$42.7 million exceptional gain on dilution of e-commerce service platform 4PX, but offset by S$7.5 million in fair value loss on warrants from express carrier service GD Express and S$2.5 million provision for contingent consideration. Excluding these, core profit after tax and minority interests (Patmi) would have been S$32.9 million (-7.5 per cent yoy), deemed broadly above our expectations and in line with consensus. First nine months of fiscal 2019 core Patmi formed 85 per cent/82 per cent of ours/consensus full-year forecasts.

Post and Parcel recorded 9 per cent yoy increase in Q3 revenue, due to higher e-commerce deliveries on the domestic postal network and cross-border volumes for the Double Eleven event in November 2018.