Sunday 01 Oct 2023
By /
main news image

KUALA LUMPUR (Nov 21): Pos Malaysia Berhad shares gained  8 sen or 1.6% to RM5.06 as at 10.30am in sparse trade of 100 shares this morning despite reporting a 15.56% drop in second quarter net profit.

Yesterday, the postal group reported a net profit of RM33.99 million on a revenue of RM371.67 million, 17.25% lower than a year ago.

In its note today, research house Kenanga said it was downgrading Pos Malaysia's FY15 and FY16 net profit forecasts by 7% and 3% respectively.

It also reduced the target price to RM 4.44 from RM 4.61.

Kenanga noted that the postal group is strengthening its retail segment through a one-stop solution centre with the growth of Islamic pawn-broking (Ar-Rahnu) business.

It said that this was on top of plans to grow its profitable courier and logistics segment through its Pos Laju network and leveraging on Kuala Lumpur Airpot Services (KLAS) to provide efficient logistic management service.

AllianceDBS Research,on the other hand, maintained a "hold" call for Pos Malaysia with a lowered target price of RM4.30.

It also anticipated further increases in both staff and transportation costs.

"This could be due to various factors such as rising fuel costs (reduction in subsidies) and additional staff needed in tandem with (the company's) expansion plans in various areas," it noted.

      Text Size