Stock Name: POS
Company Name: POS MALAYSIA BHD
Research House: OSK
POS Malaysia Bhd's earnings in financial year 2011 will grow by 66.4 per cent from financial year 2010 as full contribution from the postal tariff hike takes effect, according to OSK Research.
The research house maintained a "buy" recommendation on Pos Malaysia with target price of RM4.03 in a research note today.
It also maintained Pos Malaysia's financial year 2010 revenue forecast of RM978.3 million.
OSK Research expects operating margins in the second half of this year to improve as the quantum of tariff hike offsets the higher staff and operating costs.
On Khazanah Nasional's plan to divest its stake in Pos Malaysia, the research house said the foreign and local strategic partners from the entire Khazanah stake sale have been quite active in the past two months.
The potential suitors include DHL, TNT and recently a leading global private equity firm, CVC, emerged as another bidder, it said.
"We do not rule out that this may have progressed to the advanced stage as the year-end deadline approaches," it added.
According to OSK Research, a synergistic partnership will be able to drive efforts to boost Pos Malaysia's retail segment to provide more value offerings upon the revision of the Postal Land Act to enable the company to use its government land bank for non-postal services. - BERNAMA
Company Name: POS MALAYSIA BHD
Research House: OSK
POS Malaysia Bhd's earnings in financial year 2011 will grow by 66.4 per cent from financial year 2010 as full contribution from the postal tariff hike takes effect, according to OSK Research.
The research house maintained a "buy" recommendation on Pos Malaysia with target price of RM4.03 in a research note today.
It also maintained Pos Malaysia's financial year 2010 revenue forecast of RM978.3 million.
OSK Research expects operating margins in the second half of this year to improve as the quantum of tariff hike offsets the higher staff and operating costs.
On Khazanah Nasional's plan to divest its stake in Pos Malaysia, the research house said the foreign and local strategic partners from the entire Khazanah stake sale have been quite active in the past two months.
The potential suitors include DHL, TNT and recently a leading global private equity firm, CVC, emerged as another bidder, it said.
"We do not rule out that this may have progressed to the advanced stage as the year-end deadline approaches," it added.
According to OSK Research, a synergistic partnership will be able to drive efforts to boost Pos Malaysia's retail segment to provide more value offerings upon the revision of the Postal Land Act to enable the company to use its government land bank for non-postal services. - BERNAMA
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