Saturday, August 4, 2012

research singpost

Concerns:

Relatively new CEO that is spearheading its tranformation from a mail delivery business to a business of 5 pillars of growth. Although 3 out of the 5 pillar of growth are in areas where synergy with the mail business are evident, its still a venture out of their core business, which is declining due to the the digital age.

4 pillars of growth has no leadership position.

Capital expenditure will be higher than usual

Why would anyone pay for digital mailbox when there are so many free application that can offer up to 50 G free space, those applications mentioned by singtel was unheard of except v-post.

What is this digital business proportion of total revenue?

Logistic business, how successful will it compete against other logistic giant?? Check the trend of this sector

Margin is recovering from Q1, from 4% to about 6%, revenue has continued to increased abeit a slower pace, Q2 will be important results. Sucess in increasing volume, but not margin. Will they continue to throw money in reforming Quantium, when will it stop? Even if results are to improve, unlikely dividend will be raised, since they just have a money raising exercise, they would need to buy more. Aquisitions coming... Potential for growth... Execution not actually fantistic.... 3 yrs have passed with no fruits to bear...

Mail sector is expect to continue to dimish

No comments:

Post a Comment