As a recap, the sale of its key Australia unit has helped yield a 9-cent per share dividend payout to shareholders and a chain of ten post offices is up next, reportedly at $55.5 million.
However, there are a couple more moving parts which suggests that the next key asset indicated as none core, the SingPost Centre, may not be divested soon.
SingPost is still looking for a new CEO and along with that, a clear new strategic direction has to be laid down - a process which Seet figures will take between three to six months.
Meanwhile, as indicated by its 1QFY2026 business update, SingPost's remaining operations, domestic mail, is still in a structural decline, and its international postal business is seeing competition as well.
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"With a big portion of its non-core assets already monetised and management unlikely to sell SingPost Centre until a new strategy is in place, we believe the monetisation phase is likely over," says Seet.
Given this pause, Seet has included a 20% discount in his NAV valuation and has derived a new target price of 51 cents from 63 cents.
In the face of weaker organic operations, he has also cut his FY2026 and FY2027 earnings forecast by 36% and 35%, respectively.
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"SingPost’s local core business continues to endure a structural decline in volumes and margin pressure along with tight competition.
"Even with a potential rise in postal rates, we think it will be difficult for SingPost to generate the earnings needed to justify its valuations.
"With a lack of catalysts in monetisation of non-core assets now that majority has been done, we believe share price performance may be muted," says Seet.
SingPost shares dropped 2% to trade at 49 cents as at 9.43 am, down 9.26% year to date.
