Maybank expects SingPost to pay special dividends of at least 10 cents per share

Excluding the one-off gains from divestments, SingPost is likely to report " weak" FY2025 ended March 31 numbers, no thanks to higher costs incurred running the domestic postal network even as demand drops, as well as a challenging international business.

" However, we believe the focus should be on asset monetisation and dividends rather than earnings," says Seet, who has kept his " buy" call and 77 cents price target.

The company is also seen to continue the divestment of other assets deemed non-core in its renewed focus in ecommerce logistics.

" With the election over, we believe SingPost will now hasten efforts to size down its postal network branches to reduce cost and it&rsquo s likely to sell some of these properties at the same time," says Seet.

" With growing digitalisation of its services, post offices have become less relevant and financially unsustainable," reasons Seet, adding that SingPost is discussing with the government to come up with a new business model to address this issue.

SingPost Centre, which has significant retail and office space, is also earmarked for divestment.

The company' s freight-forwarding business, which is in the process of being sold, will also add to the divestment proceeds, says Seet.

SingPost shares changed hands at 60 cents, unchanged for the day but up 11.11% year to date.