SINGPOST said on Thursday that it has been speeding up its transformation efforts in view of the global decline in its traditional mail business.
"...SingPost has been accelerating its transformation efforts over the past few years, and continues to pursue opportunities, both organic and via M&As, to drive growth in Singapore and the regional markets,'' SingPost said.
It also said that it was unaware of any information that might have affected the trading activity of its shares recently in a response to SGX query.
SingPost has been in the limelight after Alibaba Group Holding, China's biggest e-commerce company, agreed to buy a 10 per cent stake in the company to develop its logistics in Southeast Asia.
Alibaba had said it would spend S$312.5 million to acquire about 220 million new and existing SingPost shares and that the two companies would enter talks for an e-commerce logistics venture. The purchase price of S$1.42 a share is 8.4 per cent lower than the close on May 27.
Recently, CIMB hosted SingPost CFO Ng Hin Lee and Deputy CFO Daniel Phua at its 4th Annual Asia Pacific Conference, where they met with over 30 fund managers. Discussions centred on the recently announced collaboration with Alibaba and its M&A plans.
CIMB said in a note after the conference that Alibaba's decision to partner SingPost rather than other regional logistics providers reaffirms the company's leading position in e-commerce logistics. It has also identified Indonesia as a key market in Southeast Asia where it is lacking sufficient presence.
"SingPost offers an attractive dividend yield of 4 per cent while also providing potential earnings upside from the collaboration with Alibaba and M&A activity as it expands its regional e-commerce logistics operations,'' analysts, Jessalynn Chen and Kenneth Ng said.
"We maintain our add rating and DCF-based target price of S$1.86,'' they added.
SingPost ended at S$1.765 a share on Wednesday.