3 Key Things Investors Should Know About Singapore Post Limited’s Future

Singapore Post Limited (SGX: S08) is looking to transform its business from its traditional postal services to eCommerce and logistics services.

In a recent investor presentation, Singapore Post had one slide that captured the core components of its business transformation. The firm will be looking to protect its core business, growing into new businesses and unlock value from its existing assets.    

Source: Singapore Post’s earnings briefing

1. Protect the core – click here

2. Grow the wings – click here

3. Unlock value

Beyond its traditional postal services and eCommerce logistics business, Singapore Post also owns properties like the SPC retail mall and others.

In its latest earnings briefing, group chief financial officer Mervyn Lim gave some insight on what to expect:

“The retail mall at the new SingPost Centre is expected to open in October 2017. The Group will begin to progressively recognise rental income from the second half of FY2017/18 as occupancy ramps up towards a steady state.”

On a broader scale, Singapore Post is undergoing a strategic review over the next few months to determine what stands out as its core businesses and what is considered to be non-core. Chief executive Paul Coutts said:  

“Within that strategy review, we will certainly have a look at all parts of the business; we will identify as part of that process what we see as core, what we see as non-core.

Within that we will also have a look at what additional investments we need to make and also potentially divestments that we may make once we determine what the strategy is, so that will be part of the strategy review.”

Like any business transition, it will not be always a straight line to where Singapore Post wants to go. As investors, we will have to keep watching for progress as Singapore Post heads off into its future.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.