Singapore Post (SingPost) reported a 11.7% YoY rise in revenue to S$412.8m and a 37.2% increase in net profit to S$43.0m in 3QFY18. Excluding one-off items, underlying net profit rose 11.9% to S$35.2m in the quarter. Results were in line with expectations; 9MFY18 underlying net profit met 76.5% of our full year figure.

Postal saw a 4.0% increase in operating profit, while logistics reported a 44.8% fall. eCommerce operating losses narrowed while property saw a rise in contributions. An interim dividend of 0.5 S cents was declared, same as last year.

We will update our estimates post an analyst briefing. Prior to this, we had a Hold rating and fair value estimate of S$1.26 on SingPost.

Source: OCBC Research - 2 Feb 2018