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~
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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~
近期管理層的調整更讓人揣測公司內部是否存在深層次矛盾。高管被解僱往往是兩個信號：一是戰略方向需要重新定調，二是內部執行力可能不足。雖然換血有時能帶來新思路，但也意味着短期內策略不確定，團隊磨合期難免影響業績。對投資者來說，這既是風險也是機會：如果新團隊能快速推出清晰的增長計劃，比如在東南亞物流或跨境電商配送上建立優勢，市場會重新定價；但若只是人事動盪而沒有實質改變，股價恐怕還要再試底。
至於淡馬錫系資金的持續增持，我更把它看作“穩定軍心”而非立刻反轉的催化。底層買入的誘惑確實在，但現在殺進去很可能是接一把還在下落的刀。對我個人而言，如果沒有看到連續幾個季度的盈利修復和明確的轉型成果，我寧願先觀望，等待信號真正轉暖，再考慮分批佈局。畢竟穩定的現金流和利潤纔是新加坡郵政能否重獲市場信任的根本。
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。
It's a bully company just bcoz it's the monopoly. Better to close it down.