More details have emerged from the abrupt firing of three top SingPost executives and more questions have been raised but Maybank Securities analyst Jarick Seet is urging investors to "ignore the noise" and "focus on the fundamentals".
In the most recent development, the company on Jan 2 announced that the former CEO of its Singapore operations Neo Su Yin has rejoined the company, taking up the newly-created role of group chief operating officer. Later in the day, SIAS called for an independent inquiry.
In his Jan 2 note, Seet says the company's divestment plan is on track and that should be the focus for investors.
"We believe that the roadmap to return shareholder value remains unchanged which has been affirmed by the board," he says.
In one of its updates, SingPost's board reaffirms that the divestment of FMH, its unit in Australia, is going ahead, with an EGM to be called by the end of February to obtain shareholders' go-ahead.
According to Seet's estimates, the divestment of FMH, plus that of other assets including SingPost Centre means shareholders can potentially pocket up to 86 cents per share in proceeds.
"We think the downside risk is now limited and maintain a conviction 'buy' on SingPost for its asset monetisation story," says Seet, who has a 77 cents target price on this counter.
SingPost shares closed at 54 cents on Jan 2, up 1.89% for the day and up 14.89% over the past 12 months.
