Singapore Post Limited

Reported figures for H1 FY26 included revenue of SGD 153.5 million in Logistics and Letters, an operating loss of SGD 4.4 million in that segment, and an overall 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, with exceptional gains of about SGD 9 million from disposals 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. Net profit was 17% lower year-on-year. Cash was SGD 594.1 million. The board declared an interim dividend of SGD 0.08 per share, or 30% of first-half UNP. Looking ahead, management said the SGD 30 million Tampines sorting investment is on track and expected to be fully operational by mid-2026, tripling small-parcel capacity. No formal quarterly or full-year revenue/EPS guidance was given on the call.

Mark Chong said his immediate priority, only 10 days into the job, is to keep the core business running well, serve customers, and improve operational efficiency after recent divestments and the folding of international into domestic operations. He repeatedly framed the near-term agenda as disciplined capital management and a strategic review, while declining to provide detailed future plans before that review is complete. His tone was cautious and transitional, with an emphasis on stability before strategy.

Isaac Mah highlighted a stronger balance sheet and a more streamlined cost base following the sale of non-core assets and organizational restructuring. He said underlying net profit turned to SGD 5.5 million from a SGD 0.5 million loss in the prior six months, while cash rose to SGD 594.1 million and the board declared an interim dividend of SGD 0.08 per share. He also pointed to lower costs in Logistics and Letters, with segment operating costs down about 27% year-on-year, and said the Tampines investment will expand parcel-sorting capacity and improve productivity as manpower costs continue to rise.

Analysts focused on the structural decline in mail, the collapse in cross-border volumes, the rationale for postal-network rationalization, and whether the SGD 30 million sorting investment will materially lower cost per package. Management said postal decline is structural and ongoing, and that the company is trying to adapt by leveraging its network, partnerships, and last-mile assets rather than trying to reverse the trend. On cross-border, management said the weakness reflects global market volatility and tariff uncertainty, and that SingPost is reviewing where it can still play profitably. They also said the post-office network is being optimized through a mix of revenue opportunities and cost reduction, but gave no timetable for a turnaround.