What’s next for Singapore Post shares?

• Singapore Post share price rose as high as S$0.72 on Tuesday (17 May 2022)
• The stock has bucked recent trends, rising nearly 6% in the last one month
• The postal service provider saw net profit burgeon by 35% for the full year ended 31 March 2022
• Keen to trade SingPost shares? Open an account with us to long or short the stock now.

SingPost share price: what’s the latest?

Singapore Post shares climbed as much as 2% to resume trading on Tuesday, following the announcement of its results for the second half and full year ended 31 March 2022.

The postal service group’s shares were up by nearly 6% in the last one month, bucking negative market trends amid concerns of sharp interest rate hikes and the global economic impact of China’s ongoing zero-Covid measures.

The counter, which has an average price target of S$0.815 (representing an upside of nearly 15% from the latest trading price of S$0.71) and rating of ‘outperform’ (based on SGX StockFacts data) is also up by nearly 8% year-to-date.

UOB analysts provided the latest price estimate and thesis on SingPost. They gave the stock a price target of S$0.86 and kept a ‘buy’ call, citing it as a potential Covid-19 ‘recovery play’.

How did the group fare in FY2022?

The group’s revenue for the full year rose by 18.6% to S$1.67 billion, mainly contributed by a jump in revenue from the Logistics segment.

The increase in Logistics segment revenue reflected contributions from Australian logistics company FMH, since the group increased its stake to 51% in November 2021.

For the Post and Parcel segment, revenue declined 15% and 16.3% in the second half of FY2022 and the full year respectively. ‘This was due to the continued impact of Covid-19 on air freight capacity which resulted in lower International Post and Parcel volumes,’ the group said in a press release.

Correspondingly, the group’s operating profit rose by 41.3%, while net profit attributable to equity holders for the full year grew by 74.5% to S$83.1 million. This was also despite the absence of the Jobs Support Scheme relief last year.

Underlying net profit increased by 35.2% to S$81.3 million.

SingPost Group CEO Mr Vincent Phang said:

‘We continue to see recovery for the second half of the year, as many parts of the world have now relaxed pandemic restrictions and embrace an endemic Covid-19. As we continue to integrate our operations and build end-to-end capabilities, this positions us well in the Australia logistics market.’

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