Singapore Post (SingPost) shares plummeted 8.66% in Thursday's trading session, as investors reacted to the company's latest financial results. Despite reporting a significant surge in net profit, the underlying performance of the business raised concerns among shareholders.

SingPost announced that its net profit for the second half ended March 31 skyrocketed 232.7% to S$222.5 million, up from S$66.9 million in the same period last year. However, this impressive figure was largely attributed to an exceptional gain from the disposal of its Australia business. Excluding this one-time gain, the company actually recorded an underlying net loss of S$461,000, compared to a net profit of S$28.1 million in the previous year.

Adding to investors' worries, SingPost's revenue for the second half declined by 12.1% to S$387.5 million from S$440.6 million in the year-ago period. The company did announce a proposed special dividend of S$0.09 per share from the sale of its Australia business, but this was not enough to offset concerns about the core business performance. The significant drop in SingPost's stock price reflects investors' apprehension about the company's future prospects and its ability to generate sustainable profits in its ongoing operations.