See also: SingPost appoints new directors; updates on steps taken to tighten corporate governance
“As a percentage of underlying net profit, board remuneration fell by 0.06% in FY18. In absolute terms, board remuneration fell 14% y-o-y and was down 27% from FY16 levels. Also the ratio of independent director in the board increased y-o-y to 60% from 50%,” says Maybank Kim Eng analyst John Cheong.
SingPost debt structure at end FY18 also improved. Total indebtedness fell 33% y-o-y while current borrowings dropped and EBITDA interest cover rose to 9.8x from 8.2x in FY17. The majority of borrowings now is also long-term, providing some protection against a rising interest rate environment. Maybank’s sensitivity analysis has indicated every 1% increase in interest rate will reduce FY19E EPS by 0.3%.
Maybank’s Cheong also notes there is potential for several non-core assets to be divested in its view, especially the self-storage businesses that “have little synergy with SingPost’s core business”. Also, its HQ, SingPost Centre, could be divested after the recent refurbishment.
As at 11.19am, shares in SingPost are trading at $1.26.
