Stock Name: POS
Company Name: POS MALAYSIA BHD
Research House: OSK
KUALA LUMPUR: OSK Research is still maintaining its Buy on Pos Malaysia with a target price of RM3.53 after it cautioned analysts at a briefing last week that they may have been overly-bullish in their forecasts.
OSK Research said on Monday, April 12 that Pos Malaysia believed discounts on bulk mail to cushion the impact of a sharp contraction in volume has to be taken into consideration.
On the other hand, staff costs for 2010 will be lower than expected as the new salary scheme only takes effect from July 1.
"With these new assumptions, we now have nudged up our FY10 earnings estimate by 15%, while slashing FY11 and FY12 earnings by 26% and 13% respectively.
"Revaluation of its government landbank and speculation on potential partners aside, we derive a SOP TP of RM3.53 with our BUY call maintained," it said.
Company Name: POS MALAYSIA BHD
Research House: OSK
KUALA LUMPUR: OSK Research is still maintaining its Buy on Pos Malaysia with a target price of RM3.53 after it cautioned analysts at a briefing last week that they may have been overly-bullish in their forecasts.
OSK Research said on Monday, April 12 that Pos Malaysia believed discounts on bulk mail to cushion the impact of a sharp contraction in volume has to be taken into consideration.
On the other hand, staff costs for 2010 will be lower than expected as the new salary scheme only takes effect from July 1.
"With these new assumptions, we now have nudged up our FY10 earnings estimate by 15%, while slashing FY11 and FY12 earnings by 26% and 13% respectively.
"Revaluation of its government landbank and speculation on potential partners aside, we derive a SOP TP of RM3.53 with our BUY call maintained," it said.
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