Hot stock: SingPost climbs 4.5% after talks of potential divestment of Australian business
Its Australia segment includes fourth-party logistics services, third-party logistics solutions and last-mile courier delivery
SHARES of Singapore Post (SingPost) were heavily traded on Wednesday (Nov 27) following “exclusive talks” of the potential sale of its Australian business.
The counter gained 0.9 per cent or S$0.005 to S$0.56 shortly after the market opened. At the midday trading break, the stock had traded up by 4.5 per cent or S$0.025 to S$0.58, with 19.8 million securities changing hands.
As at 1.10 pm, the group’s share price was up 3.6 per cent or S$0.02 to S$0.575.
No married deals were recorded, based on ShareInvestor data.
SingPost’s Australia segment includes fourth-party logistics services, third-party logistics solutions including transportation and distribution, and last-mile courier delivery, in addition to warehousing services.
The group’s Australian business logged a revenue of S$574.8 million for the half year ended Sep 30, up from S$398.8 million a year earlier.
In May 2023, SingPost embarked on a restructuring process, with the intention of bringing back capital returns to shareholders.
Based on a Maybank Securities report by analyst Jarick Seet that was issued on Monday, the group was viewed to be “deeply undervalued”.
According to SingPost’s recent share price levels, the stock was trading at around 15.8 times based on FY2026 estimates, which Seet highlighted to be below its global peers’ average of 19.8 times.
On the whole, SingPost’s net profit for the first half ended September nearly doubled to S$22.6 million on higher revenue, up 97.3 per cent from S$11.5 million in H1 FY2023. Group revenue rose 20 per cent to S$992.4 million from S$827.3 million a year prior.
The company declared an interim dividend of S$0.0034 per share to be paid out on Dec 2.
