agm - tzl is too cheap!!, page-17

hi uptick. i think for ceo of tzls biggest shareholder to fly so far to meet singy post is a big sign. this cannot be just for reassuring singy because this could be done over telephone. this sounds more like a strategy meeting. maybe singy wants to take a big share in tzl. whether if or if not meeting includes this i am sure this is a strategic meeting to make a plan to rule asia. i think we will see more tzl asian deals involving singy post. was anything else mentioned at agm about tzl plans in asia ?

http://sbr.com.sg/transport-logistics/news/parcel-business-could-deliver-singpost-mail-decline

" Parcel business could take off first. E-commerce-related parcel business, which falls under the Logistics pillar, could see the highest revenue growth in the next three years. This is because SingPost’s investments in Quantium Solutions and vPOST are starting to pay off, thereby helping to mitigate the impact of the mail volume decline. Quantium Solutions has been reconfigured into an e-fulfillment service company that provides order fulfillment outsourcing for e-commerce firms.

SingPost has signed up more than 100 e-fulfillment customers in the past six months. vPOST, on the other hand, mainly serves local consumers. This service enables locals to buy goods from e-commerce companies that ship only to the US, Europe and Japan. Customers can then direct their purchases to vPOST warehouses in those countries for shipment to Singapore.

Synergy with core mail business. SingPost has already built scale and depth in parcel delivery and returns management, and this new business can have great synergies with its core mail business because both have a natural alignment in last mile delivery network. To date, there are very few players in the e-fulfillment space and hardly any have a regional footprint similar to SingPost. With the regional e-commerce market anticipated to grow at double digits, SingPost’s e-commerce-related parcel business is expected to contribute more to group revenue in the future.

Sufficient cash for acquisitions. SingPost currently sits on a cash balance of SG$617m after it issued a 10-year corporate bond worth SG$200m in Mar 2010 and perpetual securities worth SG$350m in Mar 2012. The market has been waiting for it to make some big acquisitions. However, SingPost’s purchases so far are hardly considered big-sized and the total cash spent made up just 14% of the total proceeds from the abovementioned fund-raising exercises. In this view, SingPost might embark on some major acquisitions this year or next to surprise the market. It is possible that it may target e-commerce-related companies."