Stock Name: SingPost
Company Name: SINGAPORE POST LIMITED
Kim Eng Research in a Sept 20 research report says: "SingPost has demonstrated earnings resilience in the face of structural changes in the global mail industry. Its efforts to diversify into the non-mail business since its listing in 2003 have paid off with the segment contributing 31% to operating profit in FY Mar11 from 15% in FY Mar05.
"Year to date, SingPost's share price has retreated by 11% versus the Straits Times Index's decline of 13%. At 12x FY Mar12F PER, the stock is trading at one standard deviation below its PER mean, which we think represents a good entry level.
"Target price of $1.18, based on 14x FY Mar12F earnings. Including dividends, this gives an expected total return of 19%. UPGRADE TO BUY."
Company Name: SINGAPORE POST LIMITED
| Research House: Kim Eng | Price Call: BUY | Target Price: 1.18 |
Kim Eng Research in a Sept 20 research report says: "SingPost has demonstrated earnings resilience in the face of structural changes in the global mail industry. Its efforts to diversify into the non-mail business since its listing in 2003 have paid off with the segment contributing 31% to operating profit in FY Mar11 from 15% in FY Mar05.
"Year to date, SingPost's share price has retreated by 11% versus the Straits Times Index's decline of 13%. At 12x FY Mar12F PER, the stock is trading at one standard deviation below its PER mean, which we think represents a good entry level.
"Target price of $1.18, based on 14x FY Mar12F earnings. Including dividends, this gives an expected total return of 19%. UPGRADE TO BUY."
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