I read in The Edge today SingPost’s CEO for their postal service mentioning that their mail business after their expansion into logistic business will make up 50% of revenue.
Its strange that the CEO chooses to focus on the revenue makeup rather than the profit make up.
Take a look at my write-up some time ago and look at the difference in margins and return on assets between the logistics and mail. Its huge.
Ultimately we are paid in net income so if mail revenue is 50% of Singpost, by then the profits and dividend paying capability is much less.
Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.
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Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Insurance Start-up Havend. All opinions on Investment Moats are his own and does not represent the views of Providend.
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