Highlights

SGX Stocks and Warrants

Author: kimeng   |   Latest post: Wed, 22 Feb 2017, 12:09 PM

 

Singapore Post: A sense of déjà vu

Author: kimeng   |   Publish date: Tue, 14 Feb 2017, 10:38 AM


On SingPost’s first trading day post the release of its 3QFY17 results, the stock opened about 7% lower at S$1.365, but promptly recovered some losses, closing the day at S$1.405 or - 4.4% lower on heavy volume. We believe this was largely due to disappointing results, as well as the declaration of a lower interim dividend (YoY as well as QoQ in absolute per share terms).

We find this very similar to what happened post its 2QFY17 results – the stock then had closed 6.97% lower at S$1.535 on 7 Nov 2016 following the release of results on 4 Nov 2016 – and the reasons behind the share price movement were pretty much the same, in our view.

Looking back at 4 Nov 2016, there were 8 BUYs and 2 HOLDs on the stock but this has changed to 5 BUYs, 4 HOLDs and 1 SELL since then.

At current price level, SingPost has a forecasted ~2.8% dividend yield, which is probably acceptable for a company well-positioned to benefit from logistics and e-commerce growth, although time will be needed for an earnings boost.

Maintain HOLD with S$1.42 fair value estimate.

Source: OCBC Research - 14 Feb 2017

Share this
Labels: SingPost

Related Stocks

Chart Stock Name Last Change Volume 
SingPost 1.39 0.00 (0.00%) 5,583,200 

  Be the first to like this.
 


 

246  174  214  447 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 CEMW 0.084+0.013 
 Noble 0.255+0.025 
 DISA 0.0260.00 
 CATW 0.116+0.009 
 CEOW 0.058-0.014 
 Golden Agri-Res 0.400.00 
 CCUW 0.155+0.018 
 CDWW 0.01+0.002 
 Ezra 0.02-0.001 
 CCFW 0.155+0.022 
Partners & Brokers