Journey to Wealth
POS Malaysia - 2Q13 results above expectations
Period 2Q13/6M13
Actual vs. Expectations The 6M13 results came above our expectations but in line with consensus. The 6M13 core net profit of RM67m made up 48% of the consensus's earnings but 65% of our FY13 full year estimate. The courier and logistic division was the main driver for the better than expected earnings.
Dividends A 8 sen interim dividend has been declared (less 25% tax)
Key Results Highlights For the YTD, the 6M13 core net profit was up by 29% (YoY) to RM67m on the back of a 6% increase in revenue. This was mainly due to higher revenue contribution from its courier and logistic division (+15%) coupled with the operating margin improvement from 16% to 23%. The higher revenue was attributable to an increase in the online transaction business.
QoQ, the 2Q13 core net profit of RM30m was down by 13% due to the higher operating expenses incurred for the retail business and the depleting revenue contribution from the mail business (-5%).
YoY, the core net profit increased by 12% due to the higher operating margin recorded for the courier and logistic business from 12% to 23%. Nonetheless, this was moderated by the RM11m operating loss from the retail segment due to high staff and depreciation costs together with lower other segment contributions i.e. from digital certificates and the printing and insertion business.
Outlook Management is banking on the higher and profitable courier and logistic segment via leveraging on Pos Laju widespread centres in Malaysia.
Change to Forecasts We have revised our FY3-14E higher by 14% and 5% respectively as we factored in higher contribution from the courier business as well as the enhancement in the operating margin due to a higher transaction volume.
Rating Maintain OUTPERFORM
We are maintaining our OUTPERFORM rating due to the attractive upside (+31%) and decent dividend yield of 3.7% of the stock.
Valuation We have revised our TP higher to RM3.90 from RM3.70 previously (based on DCF) following our forecast revisions.
Risks (1) Delays in the execution of its business transformation plan and (2) a sharp increase in the jet fuel price.
Source: Kenanga
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
More articles on Journey to Wealth
Ekovest: No plan to launch another offer for Iskandar Waterfront City
Created by kiasutrader | Mar 29, 2018
Kenanga Research - On our Portfolio - Parliament dissolution around the corner?
Created by kiasutrader | Mar 25, 2013
Plantation Sector - Proposed accounting standard scrapped OVERWEIGHT
Created by kiasutrader | Mar 25, 2013
Pavilion Reit - Limited upside, earnings upside have been priced in HOLD
Created by kiasutrader | Mar 25, 2013
Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment
Featured Posts
Introducing MY's First IPO Fund for Sophisticated Investors!
New Update. Discover investment communities that resonate with your ideas
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
Apps
Top Articles
3
5
7
save malaysia!
8
save malaysia!
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
