Elevator Pitch
I downgrade my rating on Singapore-listed national postal service provider Singapore Post Limited (OTCPK:SPSTF) (OTCPK:SPSTY) [SPOST:SP] from Neutral to Bearish.
Singapore Post's core Post & Parcel business segment continued to face both cyclical and structural headwinds. At the same time, negative operating leverage, higher conveyancing costs, and other expenses relating to measures to contain the coronavirus pandemic are expected to be a drag on Singapore Post's profit margins. Furthermore, Singapore Post's P/E valuation and dividend yield remain unattractive.
This is an update of my prior article on Singapore Post