KUALA LUMPUR (Aug 22): Pos Malaysia Bhd (KL:POS) is likely to stay in the red amid intense competition and weakening demand even as the national postal company narrowed its losses in the latest quarter.
Pos Malaysia is grappling with new rivals undercutting its courier business with aggressive low rates while its cost-cutting measures appear insufficient to counter its weakening core business revenue, said Kenanga Investment Bank, the sole research house covering the company.
“While we applaud its venture into convenience stores” by transforming its existing outlets, “we are concerned on the gestation period of the stores to achieve operational efficiency”, Kenanga said.
Shares of Pos Malaysia slipped one sen, or about 4%, on Friday following its latest financial results. The stock has been in a downward spiral as the company grappled with massive losses stretching more than half a decade.
The company’s conventional mail business, which has been struggling to turn around in the digital age, saw its volume of domestic mail falling 11% in the latest quarter ended June 30, 2025 (2QFY2025) while that of international mail was flattish.
Further, postal sales continued to be affected by the slowdown in online shopping and lower demand from major online commerce firms that have been investing in in-house delivery capabilities, Kenanga noted.
Pos Malaysia will remain in the red at least until 2026, according to Kenanga’s forecasts. “We are cautious on Pos,” the research house said and kept the stock on ‘underperform’.
DRB-Hicom Bhd (KL:DRBHCOM), a conglomerate controlled by billionaire businessman Tan Sri Syed Mokhtar Albukhary, controls a majority stake in Pos Malaysia.