SINGAPORE (Nov 3): OCBC is keeping a “buy” call on Singapore Post as the postal services provider continues to deliver growth amid its transformation into a logistics and e-commerce player.

SingPost reported a 19.4% y-o-y rise in revenue to $263.2 million and a 38.5% increase in net profit to $53.4 million in 2QFY16, such that 1HFY16 revenue and net profit accounted for 50% and 54% of OCBC’s full-year estimates, respectively.

In a Tuesday report, lead analyst Carmen Lee says Logistics was the star performer with a 43.3% y-o-y rise in revenue to $156.1 million in 2QFY16 due to growing contributions from e-commerce logistics activities and the inclusion of new subsidiaries. In the Retail and eCommerce segment, revenue increased also 7.1% y-o-y to $23.9 million.

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