News & Events
Postal business still going strong
WHEN was the last time you handwrote a letter that the Post Office delivered to your friend? A decade or two decades ago.
But SingPost – the people who deliver letters and parcels – is still running a profitable business, and its shares are probably undervalued by as much as 17 percent. So say five of the brightest financial student brains from SIM-University of London who spent more than two months research the organisation.
The students were competing in the Chartered Financial Analysts Institute’s CFA Research Challenge, an annual event where tertiary teams analyse a public-listed company, interview its key officials and produce a report on its financial health.
Besides SIM, the other teams were from NUS, NTU, SMU and UniSIM. In the final presentation on Saturday, Feb 7, 2015, the SIM Global Education team won Best Written Report (Singapore level) while NUS won Best Presentation.
SIM GE student Shradha Agrawal says her team studied the financial report of SingPost, visited its operations centre and spoke to its senior executives. “We had an in-depth discussion with the Chief Financial Officer about the firm and its future direction. We wanted to know whether we should recommend ‘buy’ or ‘sell’ for its shares,” says Shradha.
The students gave a “buy” recommendation for SingPost. Although individual letter-writers are dead as dodos, the company still makes good money handling commercial mail (bills, invoices and leaflets stuffed inside your letter-box), and it is venturing into new businesses such as e-commerce and the logistics market in China.
Photo, from left: The SIM team, Chia Wei Lim, Shradha Agrawal, Tan Chee Leong (team leader, holding the award), Zheng Hang and Ricky Nguyen Manh Tung.