Stock Name: POS
Company Name: POS MALAYSIA BHD
Research House: INTER PACIFIC
Pos Malaysia Bhd
(April 5, RM2.93)
Maintain neutral at RM2.78, target price of RM2.12: Following the announcement that Khazanah Nasional Bhd will divest its 32% stake in Pos Malaysia Bhd on March 30, when the New Economic Model (NEM) was unveiled, we found Pos Malaysia's daily volume of shared traded had swelled, averaging 7.78 million between March 30 and April 2. In tandem, its share price gained by 35% or up 72 sen to close at RM2.78 last Friday.
Prior to the announcement, Pos Malaysia's one-year average price was RM2.22, with a high of RM2.54.
With its 35% gain from March 30 to April 2 to RM2.78 following the announcement of Khazanah's intention to divest, its share price has surpassed our target price of RM2.12 by 31.1% and consensus target price of RM2.25 by 24.4%. Also, it outperformed the FBM KLCI, which gained only 1.2% during the period to close at 1,335.9 points.
Details of the divestment plan have not been unveiled.
With the price having moved significantly and no clear details on the divestment plan, we think the potential upside could be limited from the current news, which implies that there is great room for investors to take profit.
We forecast Pos Malaysia's revenue and net profit for FY10 to come in at RM940 million and RM75.3 million respectively. - Inter-Pacific Research, April 5
This article appeared in The Edge Financial Daily, April 6, 2010.
Company Name: POS MALAYSIA BHD
Research House: INTER PACIFIC
Pos Malaysia Bhd
(April 5, RM2.93)
Maintain neutral at RM2.78, target price of RM2.12: Following the announcement that Khazanah Nasional Bhd will divest its 32% stake in Pos Malaysia Bhd on March 30, when the New Economic Model (NEM) was unveiled, we found Pos Malaysia's daily volume of shared traded had swelled, averaging 7.78 million between March 30 and April 2. In tandem, its share price gained by 35% or up 72 sen to close at RM2.78 last Friday.
Prior to the announcement, Pos Malaysia's one-year average price was RM2.22, with a high of RM2.54.
With its 35% gain from March 30 to April 2 to RM2.78 following the announcement of Khazanah's intention to divest, its share price has surpassed our target price of RM2.12 by 31.1% and consensus target price of RM2.25 by 24.4%. Also, it outperformed the FBM KLCI, which gained only 1.2% during the period to close at 1,335.9 points.
Details of the divestment plan have not been unveiled.
With the price having moved significantly and no clear details on the divestment plan, we think the potential upside could be limited from the current news, which implies that there is great room for investors to take profit.
We forecast Pos Malaysia's revenue and net profit for FY10 to come in at RM940 million and RM75.3 million respectively. - Inter-Pacific Research, April 5
This article appeared in The Edge Financial Daily, April 6, 2010.
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