SINGAPORE (May 17): DBS Group Research says beleaguered Singapore Post (SingPost) will have to turn to its ecommerce logistics hub and Singapore Post Centre mall to drive earnings growth amid a challenging outlook for its ecommerce and logistics businesses.
“Apart from declines in high-margin domestic mail volumes, the underperformance in the quarter was also due to challenges in its logistics and freight businesses which led to weaker margins, and wider operating losses from TradeGlobal,” says DBS lead analyst Sachin Mittal.
On top of booking huge impairment write-offs amounting to $208.6 million, SingPost saw underlying net profit fall 24.7% y-o-y and 32.8% q-o-q in 4Q17 to $21.4 million.
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