SingPost’s Profit Turns Negative What's Your Bottom-Fishing Price?

Tiger_SG
05-15
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$SingPost(S08.SI)$ 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~

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DBS Buys 250K SingPost Shares! Can It Stage a Comeback?
DBS Bank purchased 250,000 shares of SingPost on September 16 for about $110,000, raising its stake to 0.062%. Following this move, Temasek’s combined deemed ownership via DBS Bank and Singtel now stands at 22%. While SingPost shares closed unchanged at S$0.43 on September 17, the stock edged up 1.16% to S$0.435 by 11:42 am on September 18. Temasek-linked holdings strengtheSand the stock showS a mild rebound. Could SingPost be positioning itself for a longer-term re-rating? After declines for two months, Can SingPost stage a comeback?
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Comments

  • icycrystal
    05-16
    icycrystal
    @LMSunshine @Universe宇宙 @SPACE ROCKET @TigerGPT @GoodLife99 @koolgal @Shyon @rL @HelenJanet @Aqa

    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~

  • 1PC
    05-15
    1PC
    I will Avoid SingPost stock, Chart 📉 wise is too slow 🦥 . Unfortunately even IF there is Bottom Catch 🪝 opportunity, I will still skip this. There are Better fishes 🐠🐟🐟 [Chuckle] [Chuckle] [Chuckle] @Barcode @koolgal @Aqa @JC888 @yourcelesttyy @Shyon
    • Shyon: 
      Keep far away!
    • koolgal: 
      Thanks for sharing your valuable insights 😍😍😍
  • 北极篂
    09-18
    北极篂
    新加坡邮政最近12%的股价跌幅，说到底是市场对盈利能力的担忧再次集中爆发。邮政的传统信件业务早已进入下行通道，电商包裹虽然仍在增长，但运费竞争激烈、国际物流成本高企，毛利率一直压不下来。上一季盈利不达预期，其实反映的是结构性问题——转型脚步比想像中更慢，而投资者的耐心正在消耗。


    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。
  • Star in the Sky
    05-16
    Star in the Sky
    Postal service is a sunset business. Inorder for Singpost to stay healthy, it's need to divert into another business.. Postage services can be cut out as a service for the national.. As a whole, Singpost can transform into full logistics/ Delivery or finance services since it have many branches around the country.. Banks and investment firms can tap on its network.
  • 北极篂
    05-16
    北极篂
    新加坡邮政（SingPost）在公布疲软财报后大跌12%，并宣布从澳大利亚市场撤出，把重心重新放回新加坡核心业务。从投资者角度看，这一系列动作既是挑战，也是转机。


    先谈这次盈利下滑，确实反映出SingPost在国际化扩张上碰了钉子。澳洲业务多年亏损，烧钱且难见规模效益，此番撤资虽属“断臂求生”，但也说明公司终于愿意止损。这次下跌某种程度上是市场对转型不确定性的反应，但也隐含了情绪性杀跌成分，未必完全反映长期价值。


    管理层强调重回新加坡本土市场，我个人是持谨慎乐观态度的。新加坡市场虽小，但邮政、电商物流仍具稳定现金流，加上若能成功精简组织、压缩成本，有可能恢复一定的盈利弹性。但问题是：这不是一朝一夕能见成效的，短期波动难免。


    至于高管频繁离职，确实让人担忧公司内部是否存在路线分歧或执行力问题。重组最怕“口号式改革”，而非执行到位。如果新任领导班子不能快速树立信任、明确方向，那转型恐怕又是走过场。


    现在抄底是不是“接刀”？老实说，短期风险依然大，尤其没有明确盈利拐点的前提下，我倾向于“等待信号，而非盲目出手”。建议关注下半年是否有单季度扭亏、或者本地物流业务恢复增长的迹象，那时再考虑是否加仓，可能更为稳妥。
  • Aqa
    05-16
    Aqa
    $SingPost(S08.SI)$ share price is -11.81% within a single day after showing revenue declining for the second consecutive year and profit plunging 40.3%. Investors are selling off this stock. Technical analysis shows “Sell”! There will be blood for anyone trying to catch this falling knife. The firing of the senior executives definitely signals deep-rooted issues within the company. Thanks @Tiger_SG
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