Singpost had been climbing steadily from $0.90 to $1.00 range in June 05 to $1.00 to $1.10 range and it has hit a recent high of $1.10 last week. There maybe a chance that it will hit new high this week based on the following recommend points by UOB Kay Hian.
- Improving Fundamentals - Strong 1QFY06 Results. Improving Market Conditions which increase marketing activities of residential projects as developers are increasing using direct mails for new launches.
- Upside in Dividend Pay-Out - Attractive dividend policy of 80-90% payout with a minimum of $0.05/Share should result in a net yield of around 4.5% to 5.0%.
- Potential Divestment of Singapore Post Centre (SPC) - SPC can be sold. Based on its latest net book value of $321 million, divestment could bring in proceeds of $0.17/share.
- 6 Month Target of $1.20/share
Previous Post on Singpost
Comment: Singpost has also provide financial services, which will increase it operating revenue. Furthermore, Singpost is maximizing the existing infrastructure by distributing Yellow Pages to residential letter box in recents months as well as providing direct mail advertisement for Air Asia and other companies.
Disclaimer: The above information is for your pleasure reading only. USE THE INFORMATION AT YOUR OWN RISK. Make your own decision for any investment.
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