Date : 11 Sept 2017
Stock : POS - (RM5.45)
Target Price : - 1st RM6 / 2nd RM8
Warrant : POS-C11 (0.14 cts) - TP's more than (0.30 cts).
➡️ Kim's forsees profit taking (5.60 - 5.40) stage has been done in couple days already. New consolidation and pile has been set (5.30-5.47). Looking foward to cross back (5.50 - 5.80) by anytime to hit his 1st personel target.
➡️ POS financial results for the 1st quarter ended 30 June, recording a 21% surge in its adjusted profit (YoY) to RM37.9M, mainly contributed by higher revenue.
➡️ POS revenue grew organically 7.5%
➡️ POS international mail revenue growth of +125%
➡️ POS operating profit organically grew 12.8%
➡️ POS bottom line profit of RM37mn, which grew 21% YoY, was also supported by the reduction in the effective tax rate to 18% from 25%.
➡️ POS on waiting progress:
1) Progress on the launch of the KLIA Air Cargo Terminal. 2) Business direction - RORO business.
3) Upcoming launch of its digital mailbox.
➡️ POS invest RM250 million in new mail hub. Set up a national mail and parcel hub in Shah Alam in its aim to achieve an automation level of up to 70 percent from 20 percent currently.
➡️ Pos Malaysia and Egypt Post have agreed to step up cooperation towards the improvement of postal services between the two countries.
➡️ POS evolvement plans going forward. By providing a variety of services in a bid to become a key player in the logistics sector.
➡️ POS remain sceptical that the courier division growth would exceed 11% in the coming quarters on expectations of stronger volume due to the festive seasons at the end of the year.
➡️ POS earnings forecasts for FY19/FY20 are raised by 7.6%/5.8% to account for cost savings from the acquisition of two bulk vessels for the Tenaga Nasional Bhd contract.
➡️ POS E-commerce will anchor its long-term growth as Pos Malaysia is the primary beneficiary of the boom.
Disclaimer: above notes are based on our own interpretations and is not intended to portray any political/biased standing.
Regards,
Kim’s Stockwatch
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