Stock Name: SingPost
Company Name: SINGAPORE POST LIMITED
OCBC Investment Research in a Jan 31 research report says: "SingPost reported a 0.6% y-o-y rise in revenue to $149.4 million but a 5.2% fall in net profit to $41.6 million in 3QFY12. 9MFY12 revenue and net profit were in line with our expectations, accounting for 75.6% and 74.6% of our full-year estimates, respectively.
"The group's net gearing has increased from 0.5x as at Mar 31, 2011 to 0.75x as at Dec 31, 2011, but there is still room for further increase as management mentioned that it is comfortable with a level of 2x. SingPost has declared an interim dividend of 1.25 cents per share.
"The stock price has risen by about 4.8% since we upgraded it from hold on Jan 5, but we still see an upside potential of 16.3% (not inclusive of a forecasted dividend yield of 6.4%) based on our fair value estimate of $1.14. MAINTAIN BUY."
Company Name: SINGAPORE POST LIMITED
| Research House: OCBC | Price Call: BUY | Target Price: 1.14 |
OCBC Investment Research in a Jan 31 research report says: "SingPost reported a 0.6% y-o-y rise in revenue to $149.4 million but a 5.2% fall in net profit to $41.6 million in 3QFY12. 9MFY12 revenue and net profit were in line with our expectations, accounting for 75.6% and 74.6% of our full-year estimates, respectively.
"The group's net gearing has increased from 0.5x as at Mar 31, 2011 to 0.75x as at Dec 31, 2011, but there is still room for further increase as management mentioned that it is comfortable with a level of 2x. SingPost has declared an interim dividend of 1.25 cents per share.
"The stock price has risen by about 4.8% since we upgraded it from hold on Jan 5, but we still see an upside potential of 16.3% (not inclusive of a forecasted dividend yield of 6.4%) based on our fair value estimate of $1.14. MAINTAIN BUY."
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