SingPost’s Profit Turns Negative What's Your Bottom-Fishing Price?
$SingPost(S08.SI)$ released its earnings today, showing revenue declining for the second consecutive year and profit plunging 40.3% after excluding one-off gains.
In 2H, net profit even turned negative, prompting another wave of investor sell-off. Earlier, SingPost had dismissed several top executives, with the stock plunging nearly 10% on the day — leading some to wonder if management was acknowledging deeper business issues.
Financial Highlights
Full-year revenue: S$813.7 million, down 7.5% YoY (International segment revenue down 11.2%)
FY24/25 net profit: S$245.1 million (includes one-off gain from sale of Australia business). Excluding exceptional gain: Net profit down 40.3% YoY to S$24.8 million
2H net loss: S$0.5 million vs profit of S$28.1 million in the same period last year
Profit turns negative; management expects geopolitical tensions to continue impacting FY25/26
Cross-border logistics volumes have come under pressure. Combined with ongoing geopolitical tensions, this has created a more uncertain and challenging operating environment.
In the first half (1H), Singapore Post returned to the black with a net profit of S$11.5 million, compared to a net loss of S$9.9 million the previous year. However, the recovery was short-lived — the second half (2H) recorded a net loss of S$0.5 million. The company’s profitability has been unstable over the past two years.
Management comments,
These challenging conditions intensified in the second half of FY24/25 and are expected to persist into the coming financial year (FY25/26).
But, still good news for Shareholders: Special Dividend
SingPost completed the sale of its Australia business (FMH) for A$1.02 billion (S$853 million) in March. Shareholders will receive a total of 9.34 cents in dividends, including the interim dividend of 0.34 cents already paid.
Can Divesting the Australian Business and Refocusing on Singapore Operations Get SingPost Back on Track?
Following the Australia divestment, SingPost is refocusing on its core Singapore operations and streamlining costs.
“Given the challenging environment and the risks around geopolitical tensions, we’ve decided to move away from that space and focus on our core competencies here in Singapore,” management said.
How do you view SingPost earnings and 12% drop?
Can this renewed focus help SingPost return to stable profitability?
Does the firing of executives signal deep-rooted issues within the company?
Is Bottom-Fishing now meaning catching a falling knife?
Post directly in the topic: SingPost -12%! Revenue & Profit Down: Buy the Dip or Run Now? or leave your comments on this post to win tiger coins~
A tool to boost your purchasing power and trading ideas with CashBoost! Open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with upcoming 0-commission, unlimited trading on SG, HK, and US stocks, as well as ETFs. Find out more here.
Other helpful links:
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
I have avoided this stock, not confident in its mgt.
In the first half (1H), Singapore Post returned to the black with a net profit of S$11.5 million, compared to a net loss of S$9.9 million the previous year. However, the recovery was short-lived — the second half (2H) recorded a net loss of S$0.5 million. The company’s profitability has been unstable over the past two years.
How do you view SingPost earnings and 12% drop?
Can this renewed focus help SingPost return to stable profitability?
Does the firing of executives signal deep-rooted issues within the company?
Is Bottom-Fishing now meaning catching a falling knife?
leave your comments on this post to win tiger coins~
近期管理层的调整更让人揣测公司内部是否存在深层次矛盾。高管被解雇往往是两个信号：一是战略方向需要重新定调，二是内部执行力可能不足。虽然换血有时能带来新思路，但也意味着短期内策略不确定，团队磨合期难免影响业绩。对投资者来说，这既是风险也是机会：如果新团队能快速推出清晰的增长计划，比如在东南亚物流或跨境电商配送上建立优势，市场会重新定价；但若只是人事动荡而没有实质改变，股价恐怕还要再试底。
至于淡马锡系资金的持续增持，我更把它看作“稳定军心”而非立刻反转的催化。底层买入的诱惑确实在，但现在杀进去很可能是接一把还在下落的刀。对我个人而言，如果没有看到连续几个季度的盈利修复和明确的转型成果，我宁愿先观望，等待信号真正转暖，再考虑分批布局。毕竟稳定的现金流和利润才是新加坡邮政能否重获市场信任的根本。
Let's talk about this profit decline first, which does reflect that SingPost has hit a nail in international expansion. The Australian business has been losing money for many years, burning money and hard to see economies of scale. Although this divestment is a "broken arm to survive", it also shows that the company is finally willing to stop losses. To some extent, this decline is the market's reaction to the uncertainty of the transformation, but it also implies an emotional sell-off component, which may not fully reflect the long-term value.
The management emphasizes returning to the home market of Singapore, and I am personally cautiously optimistic. Although the Singapore market is small, postal and e-commerce logistics still have stable cash flow. In addition, if we can successfully streamline the organization and reduce costs, it is possible to restore a certain degree of profitability flexibility. But the problem is: this will not be achieved overnight, and short-term fluctuations are inevitable.
As for the frequent departures of senior executives, it does cause people to worry about whether there are route differences or execution problems within the company. Reorganization is most afraid of "slogan reform" rather than implementation in place. If the new leadership team can't quickly establish trust and clarify the direction, then I'm afraid the transformation will be a formality.
Is bargain-hunting now "catching the knife"? To be honest, short-term risks are still high, especially when there is no clear profit inflection point, I tend to "wait for signals rather than blindly shoot." It is recommended to pay attention to whether there are signs of a single-quarter turnaround in the second half of the year or the resumption of growth in the local logistics business. At that time, it may be safer to consider whether to increase positions.
It's a bully company just bcoz it's the monopoly. Better to close it down.