Stock Name: POS
Company Name: POS MALAYSIA BHD
Research House: INTER PACIFIC
KUALA LUMPUR: Inter-Pacific Research Sdn Bhd has reiterated its outperform recommendation on POS MALAYSIA BHD [] (Pos) at RM3.23, and upgraded its fair value to RM3.80 based on an average PER of 14.4 times and FY10 EPS of 26.4 sen following the national courier's tariff revision effective July 1.
The research house said the price hike was expected to raise revenue by 34%, adding that following the new tariff hike to be implemented in 1HFY10, revenue should increase by 33.5% year-on-year (y-o-y) to RM770.1 million in FY10 and 23.1% y-o-y to RM948.3 million in FY11.
"Despite increasing competition from digital TECHNOLOGY [], Malaysia's average previous five years traffic volume has been fairly stable, averaging at 1.15 billion mails.
"Our FY10 and FY11 revenue expectation is inclusive of a slight drop in household mail volume on the increase of postal tariff but supported by slight growth in business mail as global economy improves," it said.
Company Name: POS MALAYSIA BHD
Research House: INTER PACIFIC
KUALA LUMPUR: Inter-Pacific Research Sdn Bhd has reiterated its outperform recommendation on POS MALAYSIA BHD [] (Pos) at RM3.23, and upgraded its fair value to RM3.80 based on an average PER of 14.4 times and FY10 EPS of 26.4 sen following the national courier's tariff revision effective July 1.
The research house said the price hike was expected to raise revenue by 34%, adding that following the new tariff hike to be implemented in 1HFY10, revenue should increase by 33.5% year-on-year (y-o-y) to RM770.1 million in FY10 and 23.1% y-o-y to RM948.3 million in FY11.
"Despite increasing competition from digital TECHNOLOGY [], Malaysia's average previous five years traffic volume has been fairly stable, averaging at 1.15 billion mails.
"Our FY10 and FY11 revenue expectation is inclusive of a slight drop in household mail volume on the increase of postal tariff but supported by slight growth in business mail as global economy improves," it said.
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