Excerpts from UOB KayHian report
Singapore Post Limited (SGX: S08)
- We expect Singapore Post’s FY22 revenue and PATMI to post strong yoy growths, coming off a low base in FY21. The post & parcel segment is expected to recover gradually, driven by e-commerce and the reopening of international borders.
- The logistics segment continues to benefit from elevated sea freight rates and the property segment from relaxed COVID-19 measures.
- We opine that SPOST remains attractive at current price levels
Maintain BUY with a higher target price of S$0.86 (previously S$0.78)
Full reopening of Singapore’s international airways
Starting 26 Apr 22, all fully-vaccinated travellers are able to enter Singapore quarantine-free, without the need for a pre-departure COVID-19 test.
Under the new Vaccinated Travel Framework (VTF), Singapore’s government has also removed the quota on the number of daily arrivals and the approval process for all travellers.
With these measures in place, Singapore’s government targets to restore air travel to 50% of pre-pandemic levels by end-22....
