It has been a challenging time for Singapore Post Limited (SGX: S08), or SingPost. The postal and logistics group posted a 70% year on year plunge in net profit for its fiscal 2023 (FY2023) ending 31 March and sharply reduced its annual dividend to S$0.0058. Its share price has also fared poorly, falling by nearly 23% in the past year and losing close to two-thirds of its value within the last five years. The weak performance was because of the drag from its Post and Parcel division, which saw its first full-year operating loss of S$15.9 million for FY2023. SingPost’s board of directors has initiated a strategic review of the group’s portfolio of businesses and appointed BofA Securities as its exclusive financial advisor. This review aims to enhance shareholder returns and ensure the group is “appropriately valued”. We dig deep into SingPost’s business and strategic review to see if its share price can regain its former glory.

The raising of postage rates

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