Lim says that SingPost is trying to sell a network of 10 post offices in a sale-and-leaseback deal worth some $50 million.
Besides removing Famous Holdings from her valuation of SingPost, she has included the value of the post offices, and she has also lowered her FY2026 EV/Ebitda valuation multiple from 7.7x to 6x. This led to a lowered fair value of 59 cents from 60.5 cents.
Noting that SingPost's share price has dropped significantly after it went ex-dividend on July 30, Lim has changed her call to "buy", but is based mainly on valuation grounds.
She warns that SingPost's operations are now scaled down "significantly" with the recent divestments. The majority of this company's value is now in its properties and non-core assets, which are to be sold off eventually.
Meanwhile, the company's domestic postal business continues to face a structural decline, while the operating environment for the international business remains subdued.
She also notes that SingPost is now undergoing board renewal and management changes, and there is a lack of clarity over its strategic growth plan at the time of writing.
"We urge investors to exercise caution," says Lim.
SingPost shares changed hands at 50 cents ahead of the lunch break, up 2.04%.
