SINGAPORE (Nov 3): OCBC is keeping a “buy” call on Singapore Post as the postal services provider continues to deliver growth amid its transformation into a logistics and e-commerce player.

SingPost reported a 19.4% y-o-y rise in revenue to $263.2 million and a 38.5% increase in net profit to $53.4 million in 2QFY16, such that 1HFY16 revenue and net profit accounted for 50% and 54% of OCBC’s full-year estimates, respectively.

In a Tuesday report, lead analyst Carmen Lee says Logistics was the star performer with a 43.3% y-o-y rise in revenue to $156.1 million in 2QFY16 due to growing contributions from e-commerce logistics activities and the inclusion of new subsidiaries. In the Retail and eCommerce segment, revenue increased also 7.1% y-o-y to $23.9 million.

In addition, as SingPost continues to invest in its transformation initiatives, overseas revenue now accounts for 39.5% in 1HFY16 vs 30.0% in 1HFY15.

Finally, in line with its usual practice, the group has declared an interim quarterly dividend of 1.5 cents, higher than 1.25 cents in the same period last year.

As at 10.41am, SingPost is up 0.5% to $1.90. In comparison, the benchmark STI is up 1.1%.