Here are 4 potential M&A targets that could boost SingPost’s growth outlook

More acquisitions remain on its cards.

According to CIMB, SingPost has been successful in its recent acquisitions and further M&As remain on the cards. It intends to fund future M&As with cash left over after its capex and dividends and will raise funds only when needed. 

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We have identified the following possible M&A targets that can enhance SingPost’s capabilities and offerings: 

1) Low-cost couriers in Asia. These companies can offer customers better-quality and faster delivery alternatives to the local postal network.

Currently, SingPost offers last-mile delivery in Singapore and to certain cities in Malaysia, Vietnam, India, Thailand and the Philippines through its subsidiaries and JVs, but still lacks such an offering in other Asian countries such as Indonesia and China. 

2) e-commerce logistics providers. SingPost’s regional logistics presence is supported by Quantium Solutions, which has close to 20 warehouses in 12 countries. Quantium has a stronger presence in markets such as India, but fewer capabilities and warehouses in other markets. 

SingPost could potentially look at acquisitions along the e-commerce logistics supply chain to strengthen its offerings in existing markets or even new markets.

3) Mobile commerce platforms. Given the rising penetration of mobile broadband in Asia and growing e-commerce sales from m-commerce, the acquisition of mobile commerce platforms is possible. SingPost operates an e-commerce website called omigo.com, which allows SMEs and start-ups to list their products for sale. SingPost can deepen its offerings by providing a mobile platform as well. 

4) Payment solutions. A lack of reliable online payment and collection systems is another issue for the e-commerce industry in Asia. With the acquisition of a payment solutions provider, SingPost can offer secure real-time payment processing capabilities to enhance its suite of front-end e-commerce logistics offerings.