Singapore Post (SingPost) delivered a 2.2% YoY rise revenue to S$368.7m and a 12.9% drop in net profit to S$25.1m in 2QFY19.

Excluding oneoff items, underlying net profit rose 0.4% to S$28.1m in the quarter, bringing 1HFY19 to S$52.8m or 45% of our full year forecast, within expectations.

The bottom-line was supported by improved profit on operating activities but offset by negative contribution from associated companies and higher taxes.

In line with its usual practice, an interim dividend of 0.5 S cent has been declared.

Pending a briefing later, we maintain our BUY rating but put our fair value estimate of S$1.50 under review.

Source: OCBC Research - 2 Nov 2018