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 6 months. Profit from continuing operations was SGD 20.6 million, helped by about SGD 9 million of exceptional gains on disposal and a SGD 5.5 million fair value gain on SingPost Center; discontinued operations recorded a SGD 2.2 million loss versus a SGD 21 million profit in the prior period, and overall net profit was 17% lower year-on-year. In Logistics and Letters, revenue was SGD 153.5 million and the segment posted an operating loss of SGD 4.4 million; the Post Office Network operating loss narrowed to SGD 5.8 million from SGD 6.7 million; and Property Assets occupancy was 99.2%. Cash on hand was SGD 594.1 million. The board declared an interim dividend of SGD 0.08 per share, representing 30% of first-half UNP. No explicit next-quarter or full-year financial guidance was given; management instead emphasized cost discipline, balance-sheet strength, and ongoing strategic review.

Mark Chong said the immediate priority is to make the core business run well after SingPost’s divestments and restructuring, with a focus on operational efficiency, widening the network, and disciplined capital management. He repeatedly framed the call as an early-stage update, noting he was only 10 days into the job and that broader strategic plans would be shared later, after the review is complete. His tone was cautious but pragmatic, emphasizing stability over near-term reinvention.

Isaac Mah highlighted that the first half was shaped by organizational realignment, divestments, and a stronger balance sheet. He said underlying net profit improved to SGD 5.5 million from a SGD 0.5 million loss in the preceding 6 months, while cash reached SGD 594.1 million; he also pointed to about SGD 9 million in disposal gains, a SGD 5.5 million fair value gain on SingPost Center, and an interim dividend of SGD 0.08 per share. On cash flow, he said operating cash was weighed down by higher payables settlement and that investing cash flow mainly reflected disposal proceeds, while financing outflows included the August special dividend tied to the Australian sale.

Analysts focused on the structural decline in mail, the slump in cross-border volumes, and how much more network rationalization or strategic change is needed. Management said the decline in letters is structural and cannot be stopped, but they believe the postal footprint, partnerships, and the SGD 30 million Tampines sorting investment can lower cost to serve and improve service. On cross-border, they said the weakness is part of a global trend and not unique to SingPost, while the company is reviewing where it can still play profitably and how to use its assets more effectively; they declined to give a timeline for a broader turnaround, saying that would come with the strategic review.