Stock Name: POS
Company Name: POS MALAYSIA BHD
Research House: OSK
Company Name: POS MALAYSIA BHD
Research House: OSK
OSK Research is maintaining a "buy" call on Pos Malaysia Bhd but has lowered the target price to RM4.12, from RM4.45 previously, following spiraling costs of incorporating higher jet fuel assumption and its overall staff cost.
It toned down earnings expectation for financial year 2011 and 2012 by 17 per cent and 13.3 per cent, respectively.
OSK said the unveiling of Pos Malaysia's strategic partnership, expected to be announced within the next one to two months as the deadline of March 15 for bidding draws near, remained a key catalyst as it may be timed to coincide with measures to unlock the value of its landbank.
It said the potential relaxation of the use of its landbank under the purview of the Postal Bill appeared to be progressing well as the draft Bill would be tabled in Parliament sometime this month.
"We expect the proposed amendments related to relaxation to go through as it would make more economic sense for the government to optimise the potential value of the landbank," it added. -- Bernama
It toned down earnings expectation for financial year 2011 and 2012 by 17 per cent and 13.3 per cent, respectively.
OSK said the unveiling of Pos Malaysia's strategic partnership, expected to be announced within the next one to two months as the deadline of March 15 for bidding draws near, remained a key catalyst as it may be timed to coincide with measures to unlock the value of its landbank.
It said the potential relaxation of the use of its landbank under the purview of the Postal Bill appeared to be progressing well as the draft Bill would be tabled in Parliament sometime this month.
"We expect the proposed amendments related to relaxation to go through as it would make more economic sense for the government to optimise the potential value of the landbank," it added. -- Bernama
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