Stock Name: POS
Company Name: POS MALAYSIA BHD
Kenanga Research has revised upwards Pos Malaysia Bhd's financial year 2013 forecast following the latter's bullish financial results for the six-month period ended Sept 30, 2012.
Yesterday, the postal services provider posted a higher pre-tax profit of RM43.73 million for the second quarter against RM42.89 million registered in the same period of 2011.
Its revenue increased to RM300.45 million from RM292.62 million previously.
For the six-month period, pre-tax profit increased to RM96.13 million from RM79.85 million in the same period of 2011 and revenue rose to RM611.76 million from RM579.85 million previously.
Kenanga Research said the six-month 2013 (6M13) results came above its expectations but were in line with consensus.
The 6M13 core net profit of RM67 million made up 48 per cent of the consensus's earnings but 65 per cent of its financial year (FY) 2013 full-year estimate, it added.
The research house has revised its FY13-14 estimates higher by 14 per cent and five per cent respectively.
"We factored in higher contribution from the courier business as well as the enhancement in the operating margin due to a higher transaction volume," it said.
Following this, Kenanga Research has maintained its "outperform" call on Pos Malaysia with higher target price of RM3.90 against RM3.70 previously.
Hong Leong Investment Bank (HLIB) also kept its "buy" recommendation on Pos Malaysia with unchanged target price of RM3.20.
"We continue to like Pos Malaysia for the potential synergistic effect arising from more tie-ups with DRB-Hicom Bhd, its undemanding valuation and relatively generous dividend payout," said HLIB.
Pos Malaysia has announced an interim gross dividend of 8.0 sen less 25 per cent tax or net dividend of six sen. -- Bernama
Company Name: POS MALAYSIA BHD
| Research House: HLG | Price Call: BUY | Target Price: 3.20 |
Kenanga Research has revised upwards Pos Malaysia Bhd's financial year 2013 forecast following the latter's bullish financial results for the six-month period ended Sept 30, 2012.
Yesterday, the postal services provider posted a higher pre-tax profit of RM43.73 million for the second quarter against RM42.89 million registered in the same period of 2011.
Its revenue increased to RM300.45 million from RM292.62 million previously.
For the six-month period, pre-tax profit increased to RM96.13 million from RM79.85 million in the same period of 2011 and revenue rose to RM611.76 million from RM579.85 million previously.
Kenanga Research said the six-month 2013 (6M13) results came above its expectations but were in line with consensus.
The 6M13 core net profit of RM67 million made up 48 per cent of the consensus's earnings but 65 per cent of its financial year (FY) 2013 full-year estimate, it added.
The research house has revised its FY13-14 estimates higher by 14 per cent and five per cent respectively.
"We factored in higher contribution from the courier business as well as the enhancement in the operating margin due to a higher transaction volume," it said.
Following this, Kenanga Research has maintained its "outperform" call on Pos Malaysia with higher target price of RM3.90 against RM3.70 previously.
Hong Leong Investment Bank (HLIB) also kept its "buy" recommendation on Pos Malaysia with unchanged target price of RM3.20.
"We continue to like Pos Malaysia for the potential synergistic effect arising from more tie-ups with DRB-Hicom Bhd, its undemanding valuation and relatively generous dividend payout," said HLIB.
Pos Malaysia has announced an interim gross dividend of 8.0 sen less 25 per cent tax or net dividend of six sen. -- Bernama
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