Singapore Post Limited

For H1 FY26, SingPost reported underlying net profit of SGD 5.5 million, versus a SGD 0.5 million loss in the preceding six months. Profit from continuing operations was SGD 20.6 million, helped by exceptional items including about SGD 9 million of disposal gains and a SGD 5.5 million fair value gain on SingPost Center. Net profit was 17% lower year on year, and discontinued operations recorded a SGD 2.2 million loss versus a SGD 21 million profit in the prior period when Australia was still included. Segmentally, Logistics and Letters revenue was SGD 153.5 million with an operating loss of SGD 4.4 million, Post Office Network operating loss narrowed from SGD 6.7 million to SGD 5.8 million, and Property Assets occupancy was 99.2%. Cash stood at SGD 594.1 million. No formal next-quarter or full-year revenue/EPS guidance was given; management said the focus is on stabilizing the core business, continuing cost discipline, and completing the strategic review.

Mark Chong said he is only 10 days into the job and did not want to pre-empt the future strategy, but emphasized immediate priorities: running the core business well, improving operational efficiency, widening the network, and maintaining disciplined capital management. He framed the business as having moved to a single entity after divestments and said the proceeds have already been used for a special dividend, debt repayment, and working capital. His tone was cautious and pragmatic, repeatedly saying more detail on the long-term strategy would come after the strategic review is complete.

Isaac Mah focused on the cleaner structure and stronger balance sheet after the sale of the Australian business and other non-core assets, plus the removal of overlapping corporate functions. He highlighted the turnaround in underlying profit to SGD 5.5 million, the SGD 9 million of disposal gains, the SGD 5.5 million fair value gain on SingPost Center, and cash of SGD 594.1 million. He also said the company paid down about SGD 300 million of debt tied to the Australian business, has two bond tranches outstanding of SGD 100 million and SGD 250 million, and declared an interim dividend of SGD 0.08 per share, or 30% of UNP.

Analysts pressed management on the structural decline in postal volumes, the outlook for cross-border, the return on the SGD 30 million Tampines automation project, and how much further post office rationalization could go. Management said mail decline is structural and cannot be stopped, but the network can be made more competitive through partnerships, better touch points, and lower cost-to-serve; they also said the new sorting capacity should be fully operational by mid-2026 and triples small-parcel capacity. On cross-border, management said volatility is being driven by broader global trade uncertainty and tariff swings, not just SingPost, and that the company is still determining where it can best play after the strategic review.