Singapore Stock Market News

Singapore Post Ltd - Open sesame

StockFanatic
Publish date: Thu, 29 May 2014, 11:16 AM
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SingPost's strategic partnership with Alibaba opens doors via access to funds for larger-scale M&As and the opportunity to leverage on Alibaba's customer base to scale up its regional e-commerce logistics operations. We raise our FY16-17 EPS by 2-3% to factor in higher transhipment and e-commerce logistics volumes, but cut our FY15 EPS by 6% due to share dilution post-equity issuance. Our DCF-based target price rises to S$1.86 (WACC 7.1%).

We maintain our Add call, with potential M&As and growing e-commerce volumes are the key catalysts.
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