Stock Name: POS
Company Name: POS MALAYSIA BHD
Research House: AMMB
KUALA LUMPUR: AmResearch is maintaining its BUY call on Pos Malaysia with unchanged fair value of RM3.80/share; based on 20% discount to its DCF estimates (WACC of 9.5% and terminal PE of 14x). "However, we have lowered our FY10F EPS estimates by -20%. With the salary review from a tariff hike being a one-off, our FY11F-12F has increased 2%-10%. On net basis, our valuation remains intact," it said on Monday, April 19. AmResearch said after detailed analysis of Pos Malaysia's PROPERTIES [], we found that it holds three under-utilised pieces of land, worth an estimated RM250mil (RM0.46/share). The land with the most significant development potential is a tract next to KL Sentral - currently a PosLaju centre and warehouse for vehicles. Pos Malaysia's current 2.2-acre mail processing centre (MPC) in Bukit Raja is expected to be vacant once the national MPC in Shah Alam opens in 4Q10. "Stock represents an opportunity for a 6% yield (a conservative 40% payout) and an implied 25% return, on top of a special dividend potential arising from its land sale, with re-rating catalysts from the Government's de-regulation," it said.
Company Name: POS MALAYSIA BHD
Research House: AMMB
KUALA LUMPUR: AmResearch is maintaining its BUY call on Pos Malaysia with unchanged fair value of RM3.80/share; based on 20% discount to its DCF estimates (WACC of 9.5% and terminal PE of 14x). "However, we have lowered our FY10F EPS estimates by -20%. With the salary review from a tariff hike being a one-off, our FY11F-12F has increased 2%-10%. On net basis, our valuation remains intact," it said on Monday, April 19. AmResearch said after detailed analysis of Pos Malaysia's PROPERTIES [], we found that it holds three under-utilised pieces of land, worth an estimated RM250mil (RM0.46/share). The land with the most significant development potential is a tract next to KL Sentral - currently a PosLaju centre and warehouse for vehicles. Pos Malaysia's current 2.2-acre mail processing centre (MPC) in Bukit Raja is expected to be vacant once the national MPC in Shah Alam opens in 4Q10. "Stock represents an opportunity for a 6% yield (a conservative 40% payout) and an implied 25% return, on top of a special dividend potential arising from its land sale, with re-rating catalysts from the Government's de-regulation," it said.
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