This comes after SingPost reported a 41% decline in 2Q17 earnings last Friday to S$31 million. “While we remain positive on SingPost’s long-term prospects, the recent outperformance appears to have discounted recent positives, including Alibaba’s recent investments,” says Thai. Despite noting an increasingly competitive logistics space, UOB is hoping that SingPost’s collaboration with Alibaba will muscle its e-commerce logistics capabilities in the region and strengthen its network. Meanwhile, OCBC has reiterated its “hold” call with expectations of expenses being driven up in the near-term as SingPost builds on its e-commerce logistics capabilities. “Margins in the logistics space are lower than mail, and competition in e-commerce logistics has also been increasing,” she adds.

Source: The Edge Markets November 08, 2016 09:40 UTC