The mailman finds a new job in e-commerce industry

SingPost is making a career shift.

According to CIMB, in response to declining mail volumes and an increasingly tough operating environment, SingPost is undergoing a major transformation to become a leading e-commerce logistics player in Asia.

With its low-cost distribution network and active acquisitions in the region, they believe that SingPost is ready to meet demand for low-cost end-to-end e-commerce logistics solutions in Asia.

Here's more from CIMB:

We initiate coverage with an Add rating and DCF-based target price of S$1.55 (WACC 7.3%). Catalysts are expected from e-commerce logistics growth.

SingPost has all the last-mile assets to deliver mail anywhere in Singapore. Mail delivery is a sunset industry but SingPost’s assets are still good for delivering a variety of goods in the world of e-commerce.

The business only requires tweaks to 1) refine its infrastructure to deliver parcels, in addition to mail; 2) add last-mile delivery capabilities in Asia; and 3) add end-to-end e-commerce logistics solutions – all of which SingPost is doing via investments or M&A.