SingPost braces for shift from investment phase to post-merger integration

It’s time to move on from being M&A-heavy.

After being aggressive in mergers and acquisitions to build up its e-commerce logistic network for about three years, it’s time for a strategic shift for the Postman.

According to analysts from CIMB, SingPost management shared its plan to focus on realising synergies from its acquisitions or post-merger integration.

“So far, acquisitions have contributed to significant revenue growth, but earnings have yet to flow through given continued investments. We expect earnings momentum to improve in the medium-term as SPOST reaches the tail end of the investment phase,” CIMB said.

Meanwhile, its recent acquisitions of TradeGlobal and Jagged Peak present opportunities to gain critical mass in the monobrand business, assisting US brands to set up e-commerce operations in ASEAN, Australia and New Zealand.

“SPOST can also capitalise on TradeGlobal and Jagged Peak’s partnerships in Europe to make inroads to the European monobrand market to complete its global offering,” CIMB said.