Wow, terindah


The four large pieces of land Pos Malaysia directly owns have a combined size of 10.5ha and an estimated market value of RM218.5 million, according to AmResearch’s data.


This includes Pos Malaysia’s Pos Laju centre and a vehicle warehouse along Jalan Tun Sambanthan in Brickfields, not far from KL Sentral.

AmResearch estimates that the 0.9ha Brickfields land alone is worth some RM176.3 million or RM1,500 psf.

This is not bad given that the estimated net book value of the land was a mere RM2.2 million.

Nanti, revalue premises (kedai/kilang/gudang) & tanah, naik gila.

Data centers, dll hot kini

Patience required, 😎

Like msm, rebound like crazy , all possibilities

Bottom out, sell some lands for data centers, rise like crazy

Pos Malaysia is accelerating the implementation of new value creators in its retail segment,
international and fulfilment, whilst addressing underperforming business units.
Brewer explained: “We will double down on the scaling-up of our newer ventures such as Pos
Shop, Pos Fulfill, and our international venture redlyexpress, which is necessary to de-risk the
structural mail decline and a very competitive parcel segment.
“We are excited to share that since launching our first Pos Shop convenience store at Jalan
Medan Tuanku, Kuala Lumpur in May 2023 as part of Pos Malaysia’s retail transformation
strategy, we have now opened 31 stores across Peninsula Malaysia to-date, with an aggressive
plan to expand to 50 outlets in total by the end of 2024. Pos Fulfill, our fully integrated fulfilment
operations continue to ride on the growing demands for warehousing and fulfilment solutions,
offering both the business-to-business (B2B) and business-to-consumer (B2C) sectors cuttingedge technology and a sprawling warehouse space of over 200,000 square feet in facilities
located at Shah Alam, Bukit Raja, Kota Kinabalu and Kuching. With deliveries to over 43
countries, our cross-border digital shipping business, redlyexpress, uniquely positions Pos
Malaysia in the global logistics market, where we provide an efficient, reliable and cost-effective
model for e-commerce and online retailers seeking international parcel delivery services.”
Pos Aviation, a key subsidiary in the Group’s diversified portfolio which has registered consistent
year-on-year growth fuelled by rising demands for in-flight catering and cargo handling services,
will continue to prioritise driving domestic expansion while capitalising on its recent joint venture
with SIA Engineering Company Limited (SAIEC).
“For the core Pos Malaysia business, we seek to maximise the opportunities that the e-commerce
parcel segment continues to offer, bolstered by our market-leading service standards and
continuous expansion of innovative products and services,”.😉😚

masa terindah untuk ekuiti ya!

https://www.klsescreener.com/v2/news/view/1384635/hunt-for-fed-pivot-winners-sparks-a-rush-to-malaysia-indonesia

Going to occur again soon

In an unexpected deal Malaysia Post is set to be acquired under the countrys privatisation programme by Phileo Allied.

https://postandparcel.info › news
Pos Malaysia set to privatise | Post & Parcel

Pos Market cap fell to about rm250m. Drb holds more than 50%. Need rm100++ to privatise it for biz reengineering, rtc. No need to show the public that would affect drb share price as well

Quarterly loss dah 5-6 tahun, bobo:)

DRB-Hicom shares have declined some 15% so far this year following Thursday morning’s decline. The company’s listed subsidiary Pos Malaysia Bhd (KL:POS) in particular has suffered 22 consecutive quarters of losses.

Drb must take immediate corrective actions on pos Malaysia, useless top mgmt/BODs. Hehehe

On Wednesday, DRB-Hicom reported a net loss of RM17.08 million for the second quarter ended June 30, 2024 (2QFY2024), against a net profit of RM33.71 million a year earlier, mainly due to Proton Holdings Bhd and losses from Pos Malaysia as well as higher tax expenses.

Drb hicom would do something drastic to pos Malaysia, dragging it to the bottom hehe

KUALA LUMPUR (Aug 28): DRB-Hicom Bhd (KL:DRBHCOM) posted a net loss of RM17.08 million in the second quarter against a net profit of RM33.71 million a year ago, mainly due to weaker financial performance in Proton Holdings Bhd and losses from Pos Malaysia Bhd following reduced revenue in its international business.

Revenue for the quarter ended June 30, 2024 (2QFY2024) dropped 5.6% year-on-year to RM3.76 billion from RM3.98 billion, the group's bourse filing on Wednesday showed.

DRB-Hicom said the decline in revenue was primarily due to lower sales volume of Proton vehicles, affected by the scheduled plant maintenance shutdown during the quarter.

Pos Malaysia, meanwhile, posted a 2.7% fall in revenue mainly due to lower international business following the drop in overall mail and international volume.

Whether or not Pos Malaysia should dismiss its current CEO or any executive, including a non-Malaysian, depends on various factors such as their performance, the company's financial health, and their strategic direction. If there are concerns about leadership, these should be based on measurable outcomes, the ability to meet business goals, and the satisfaction of stakeholders rather than nationality alone. Leadership changes are significant decisions and should be carefully considered with a focus on the company's long-term success.

Do what apple did yah

Investing.com-- Apple Inc (NASDAQ:AAPL) cut about 100 jobs in its digital services group amid shifting priorities in the company, Bloomberg reported on Tuesday.

The cuts affected employees who worked across several different teams under Senior Vice President Eddy Cue, Bloomberg reported, citing people close to the matter. The biggest cuts were in teams working on Apple’s bookstore services.

The move marks a rare instance of job cuts by the Cupertino-based tech giant, which has otherwise largely retained its employees amid a growing wave of layoffs across its major tech peers.

The firm is set to unveil the latest iteration of its flagship iPhone in early-September, and will also start rolling out a slew of artificial intelligence features in its devices. The iPhone 16 will headline Apple’s AI push, amid growing hopes that AI will help reignite growth after over a year of declining device sales.

Reports earlier this year showed Apple had canceled its long-awaited car project to instead shift focus towards AI. The company had reportedly reassigned about 2,000 employees with some potential redundancies.

AdditionalRm123mil free cash from disposal of a stake into pos Malaysia. Ong lah...

Macam pos msia, disposal of stake in PETALING JAYA: Pos Malaysia Bhd's subsidiary Pos Logistics Bhd has proposed to dispose of its entire equity interest (49 million shares) in PNSL Bhd to SWA Shipping Sdn Bhd for RM123. 21 million.

Sime Darby ends FY2024 on strong footing on disposal gain from Ramsay Sime Darby Health Care stake, declares 10 sen dividend
By Kang Siew Li / theedgemalaysia.com
27 Aug 2024, 01:27 pm
Updated - 02:02 pm

4remembrance.

DRB-HICOM's decision to acquire Pos Malaysia at a high price can be attributed to several strategic reasons:

1. **Expansion into Logistics and E-Commerce**: Pos Malaysia, as the national postal service provider, had a significant footprint in logistics and e-commerce, sectors that were rapidly growing in importance. DRB-HICOM likely saw value in tapping into these expanding markets through Pos Malaysia's extensive network.

2. **Synergy with Existing Businesses**: DRB-HICOM has a diverse portfolio, including automotive, services, and property. Acquiring Pos Malaysia could create synergies, especially in logistics and distribution, by integrating the postal services with DRB-HICOM's other businesses.

3. **Monopolistic Advantage**: Pos Malaysia held a monopoly on traditional mail services in Malaysia, which provided a steady and reliable revenue stream. DRB-HICOM likely viewed this as a stable income source, justifying the higher acquisition cost.

4. **Future Growth Potential**: The acquisition was seen as a long-term investment, with potential for growth in areas like digital services, parcel delivery, and international logistics. DRB-HICOM may have been willing to pay a premium, anticipating that Pos Malaysia would play a key role in the country’s evolving digital economy.

5. **Government Relations**: Acquiring a state-owned entity like Pos Malaysia could have also strengthened DRB-HICOM's relationship with the government, possibly leading to future business opportunities and favourable regulatory conditions.

6. **Strategic National Asset**: As a key national infrastructure, Pos Malaysia was seen as a strategic asset. DRB-HICOM might have been motivated by the prestige and influence associated with owning such an entity.

Overall, DRB-HICOM’s acquisition of Pos Malaysia was likely driven by a combination of immediate synergies, long-term strategic positioning, and the potential for growth in the logistics and e-commerce sectors.

Disposal gain like sime darby coming yah

PETALING JAYA: Pos Malaysia Bhd's subsidiary Pos Logistics Bhd has proposed to dispose of its entire equity interest (49 million shares) in PNSL Bhd to SWA Shipping Sdn Bhd for RM123. 21 million.21 May 2024

Management and Strategy: Assess the company's management and strategic direction. If they are implementing a strong turnaround plan or investing in growth areas (e.g., e-commerce logistics), the low share price could be an opportunity.Market Sentiment: Broader market trends or economic conditions may be affecting Pos Malaysia's share price. Economic downturns, rising interest rates, or negative investor sentiment towards the sector could be contributing factors.

Time to add Malaysian stocks as Fed cuts rates, says Nomura https://theedgemalaysia.com/node/724209

Kawan Food Berhad’s rising profitability can be attributed to several key factors:

### 1. **Strong Demand for Affordable Food Products**
- **Price Sensitivity**: During economic downturns, consumers tend to prioritize cost-effective options. Kawan Food’s affordable range meets this demand, increasing sales volume and profitability.
- **Essential Goods**: Offering staple and convenience foods that are consistently in demand helps maintain steady revenue streams.

### 2. **Operational Efficiency**
- **Cost Management**: Effective cost management and operational efficiencies contribute to higher margins. This includes optimizing production processes and managing supply chain costs.
- **Economies of Scale**: As production scales up, Kawan Food benefits from economies of scale, reducing the per-unit cost of production and improving profitability.

### 3. **Product Diversification**
- **Wide Product Range**: A diverse product portfolio allows Kawan Food to cater to different consumer preferences and market segments, enhancing revenue potential and reducing dependency on a single product line.
- **Innovation**: Continuous product innovation and introduction of new offerings help capture consumer interest and drive sales growth.

### 4. **Effective Pricing Strategy**
- **Competitive Pricing**: Maintaining competitive pricing while ensuring good value for money attracts a larger customer base and boosts sales.
- **Promotions and Discounts**: Strategic use of promotions and discounts can drive higher sales volume and improve profitability.

### 5. **Market Expansion**
- **Domestic Growth**: Expanding distribution channels and increasing market penetration within the domestic market can lead to higher sales and profitability.
- **International Expansion**: Entering new international markets provides opportunities for revenue growth and diversification.

### 6. **Brand Strength and Customer Loyalty**
- **Established Brand**: Kawan Food’s established brand and reputation for quality enhance customer loyalty and repeat purchases.
- **Customer Trust**: Consistent quality and reliability build trust, leading to sustained consumer demand.

### 7. **Operational Investments**
- **Technology and Automation**: Investments in technology and automation improve production efficiency and reduce costs, contributing to higher profit margins.
- **Infrastructure Upgrades**: Upgrading facilities and infrastructure enhances production capacity and operational efficiency.

### 8. **Strategic Partnerships and Supply Chain Management**
- **Supplier Relationships**: Strong relationships with suppliers and effective supply chain management help control costs and ensure timely availability of raw materials.
- **Partnerships**: Strategic partnerships and collaborations can enhance market reach and operational capabilities.

### 9. **Positive Market Trends**
- **Growing Demand for Convenience Foods**: Increased consumer preference for convenience foods and ready-to-cook items aligns with Kawan Food’s product offerings.
- **Health and Wellness Trends**: Adapting to trends such as healthier eating options can attract new customer segments and boost sales.

### 10. **Financial Management**
- **Revenue Growth**: Steady revenue growth from increased sales and market expansion supports rising profitability.
- **Cost Control**: Effective financial management and cost control measures contribute to improved profit margins.

### Conclusion
Kawan Food Berhad’s rising profitability is driven by strong demand for affordable food products, operational efficiency, product diversification, effective pricing strategies, market expansion, brand strength, and strategic investments. By leveraging these factors, the company successfully enhances its financial performance and profitability.

Kawan Food Berhad could be a strong potential player in a tough market due to several factors related to its product offerings and market positioning:

### 1. **Affordability**
- **Cost-Effective Products**: Kawan Food Berhad’s products are positioned as affordable, making them accessible to a broad consumer base, especially during economic downturns when people are more price-sensitive.
- **Value for Money**: Offering good value for money can help attract and retain customers looking to manage their budgets without compromising on quality.

### 2. **Essential Food Products**
- **Staple Items**: The company’s range of products, such as frozen foods and ready-to-eat items, includes essential and convenient food options that are consistently in demand.
- **Convenience**: In a tough market, consumers often prioritize convenience. Kawan Food’s ready-to-cook and frozen products cater to this need.

### 3. **Wide Market Appeal**
- **Diverse Product Range**: Kawan Food offers a diverse product range that appeals to different demographics, including families, working professionals, and budget-conscious consumers.
- **Accessibility**: The products are widely available in various retail outlets, making it easy for consumers to purchase them.

### 4. **Strong Brand Presence**
- **Established Brand**: Kawan Food Berhad has an established brand presence in the market, which can help in maintaining customer loyalty and trust during challenging economic times.
- **Reputation for Quality**: A reputation for quality and reliability can enhance consumer confidence, even in a tough market.

### 5. **Strategic Pricing**
- **Competitive Pricing Strategy**: By maintaining competitive pricing, Kawan Food Berhad can attract price-sensitive consumers and potentially capture a larger market share.
- **Promotions and Discounts**: The company may offer promotions or discounts to further appeal to budget-conscious consumers and increase sales volume.

### 6. **Adaptability and Innovation**
- **Product Innovation**: Kawan Food’s ability to innovate and adapt its product offerings to meet changing consumer preferences and market trends can enhance its competitive edge.
- **Responsive to Market Needs**: Being responsive to shifts in consumer demand, such as an increased focus on health or convenience, can position the company favorably.

### 7. **Global Expansion Potential**
- **Export Opportunities**: There may be opportunities for Kawan Food Berhad to expand its market reach beyond domestic borders, leveraging its affordable product range to tap into international markets.

### Conclusion
Kawan Food Berhad’s potential during a tough market is supported by its affordable product offerings, essential food items, wide market appeal, strong brand presence, competitive pricing, adaptability, and possible global expansion opportunities. These factors collectively contribute to its ability to thrive in challenging economic conditions.

As of 2024, Pos Malaysia has not revised its postal rates for over 5 years. The last minor postal rate adjustment occurred in 2020. Since then, several factors justify the need for a revision now:

### 1. **Increased Operational Costs**
- **Inflation**: Rising inflation has increased the costs of materials, labor, and transportation. These factors contribute to higher operational expenses, necessitating a review of postal rates.
- **Fuel Prices**: Fluctuations in fuel prices impact delivery costs. Higher fuel prices can significantly affect the cost of transportation and logistics.

### 2. **Economic Changes**
- **Economic Growth**: Changes in the economic landscape, including increased costs of living and doing business, may have outpaced the fixed revenue from outdated postal rates.
- **Market Dynamics**: Economic conditions and market demands have evolved, potentially affecting the financial sustainability of Pos Malaysia's services.

### 3. **Operational and Technological Upgrades**
- **Modernization**: Investments in technology and infrastructure improvements are essential for maintaining service quality and efficiency. Higher costs associated with modernization and digital transformation may necessitate a revision of rates.
- **Service Enhancements**: Upgrading facilities and services to meet current standards and customer expectations requires financial resources, which may be supported through revised rates.

### 4. **Increased Demand for Services**
- **E-commerce Growth**: The rise in e-commerce has increased the volume of parcels and mail, leading to higher operational costs. Adjusting postal rates can help manage the increased demand and associated expenses.
- **Expanded Services**: Introduction of new services or expansion of existing ones may require additional funding, which can be offset by adjusting rates.

### 5. **Financial Health of Pos Malaysia**
- **Revenue Needs**: If Pos Malaysia is facing financial challenges or requires additional revenue to sustain operations, a rate revision can provide necessary financial support.
- **Profitability**: Ensuring profitability and financial stability is crucial for continuing quality services. A rate revision can help address any financial shortfalls.

### 6. **Regulatory and Competitive Factors**
- **Regulatory Compliance**: Changes in regulatory requirements may impact operational costs, necessitating a review of postal rates.
- **Competitive Landscape**: Adjustments may be needed to remain competitive and viable in the evolving postal and logistics market.

### Conclusion
Pos Malaysia has maintained its postal rates since 2020, a period of over half a decade. The justification for revising postal rates now includes increased operational costs, economic changes, the need for modernization, higher demand for services, financial health considerations, and regulatory factors. Addressing these issues through a rate revision can help ensure the sustainability and quality of postal services.

The likelihood of government approval for a postal rate revision by Pos Malaysia depends on several factors:

### 1. **Economic Justifications**
- **Economic Necessity**: The government is more likely to approve rate increases if Pos Malaysia provides clear evidence that rising operational costs or economic conditions justify the need for a revision. This includes detailed financial reports and cost analyses.

### 2. **Public Impact**
- **Consumer Protection**: The government will consider the impact of rate changes on consumers, especially low-income and rural communities. If a rate increase significantly affects public accessibility to postal services, the government might be cautious about approving it.
- **Public Consultation**: Governments often seek public input before approving rate changes. Positive or negative feedback from stakeholders, including businesses and the public, can influence the decision.

### 3. **Regulatory Framework**
- **Regulatory Compliance**: Any proposed rate revision must comply with existing regulations and guidelines. The government will review whether the proposed changes align with regulatory standards and requirements.

### 4. **Financial Health of Pos Malaysia**
- **Financial Stability**: The government will assess Pos Malaysia’s financial health and need for additional revenue. If the company demonstrates financial difficulties that require rate adjustments to maintain service quality, approval is more likely.
- **Subsidy and Support**: If the government has provided subsidies or support in the past, it may evaluate whether these measures have been sufficient before approving further rate increases.

### 5. **Strategic Goals**
- **Alignment with Policy Goals**: The government will consider whether the proposed rate changes align with broader policy goals, such as improving service quality, promoting economic growth, or supporting rural connectivity.
- **Service Improvements**: If Pos Malaysia can demonstrate that rate adjustments will lead to improved services or infrastructure, the government may be more inclined to approve the changes.

### 6. **Competitiveness and Market Conditions**
- **Market Dynamics**: The government will assess how the rate changes might affect competition in the postal and logistics sector. Ensuring fair competition and avoiding monopolistic practices are important considerations.
- **Service Demand**: If there is a significant shift in service demand or competition, the government may evaluate whether rate adjustments are necessary to balance market conditions.

### 7. **Historical Precedents**
- **Past Decisions**: Historical decisions on postal rate revisions can provide insight into how the government might respond. If previous rate adjustments have been handled in a certain manner, similar approaches might be expected.

### Conclusion
The likelihood of government approval for a postal rate revision by Pos Malaysia depends on the economic justifications, public impact, regulatory compliance, financial health of the company, alignment with strategic goals, market conditions, and historical precedents. A well-documented proposal demonstrating necessity and addressing potential impacts is more likely to gain approval from the government.

Here’s a summary of how Pos Malaysia can reduce its general and administrative (G&A) expenses:

- **Optimize Workforce Management**
- Restructure staffing and streamline roles.
- Invest in employee training and development.
- Consider remote work or flexible arrangements.

- **Improve Operational Efficiency**
- Implement process automation for repetitive tasks.
- Apply lean management principles to eliminate waste.
- Standardize procedures across administrative functions.

- **Enhance Technology Utilization**
- Invest in IT solutions like ERP and CRM systems.
- Utilize cloud computing for cost-effective data management.

- **Reduce Facility Costs**
- Optimize office space usage and consider downsizing.
- Implement energy-saving measures in facilities.

- **Review and Negotiate Vendor Contracts**
- Regularly review and negotiate contracts with vendors.
- Consolidate purchasing to leverage bulk buying.

- **Implement Cost Control Measures**
- Monitor budgets and conduct variance analysis.
- Strengthen approval processes for discretionary spending.

- **Enhance Financial Management**
- Conduct regular financial reviews and audits.
- Improve cash flow management and timely collections.

- **Outsource Non-Core Functions**
- Consider outsourcing administrative functions like payroll and IT support.

- **Promote a Cost-Conscious Culture**
- Foster cost awareness and employee engagement.
- Provide training on cost management and financial discipline.

- **Benchmarking and Best Practices**
- Benchmark against industry peers to identify best practices.
- Implement industry best practices for administrative functions.

Here’s a summary of how Pos Malaysia can go green and obtain carbon credits:

- **Energy Efficiency and Renewable Energy**
- Upgrade facilities with energy-efficient technologies.
- Invest in renewable energy sources (e.g., solar panels).
- Implement energy management systems.

- **Fleet Management and Transportation**
- Transition to electric or hybrid vehicles.
- Implement route optimization software.
- Invest in fuel-efficient vehicles.

- **Waste Management and Recycling**
- Adopt waste reduction, reuse, and recycling practices.
- Minimize paper use by transitioning to digital solutions.

- **Sustainable Packaging**
- Use eco-friendly and recyclable packaging materials.
- Optimize packaging to reduce waste.

- **Carbon Offset Projects**
- Invest in or support carbon offset projects (e.g., reforestation).
- Partner with certified offset projects.

- **Certification and Reporting**
- Conduct carbon footprint assessments.
- Obtain certifications (e.g., ISO 14001).
- Apply for carbon credits through recognized certification bodies.

- **Employee and Community Engagement**
- Promote a green culture among employees.
- Engage in community-based environmental initiatives.

- **Innovation and Technology**
- Invest in green technologies and smart logistics solutions.

- **Compliance and Regulations**
- Adhere to environmental regulations and standards.

### Steps to Obtain Carbon Credits:
1. Establish a baseline of current emissions.
2. Implement emission reduction measures.
3. Verify reductions with a third-party.
4. Register and certify reductions with a carbon credit body.
5. Obtain and trade or sell carbon credits.

Here’s a summary of the ways the Malaysian government can support Pos Malaysia:

- **Financial Support**
- Subsidies and grants to offset operational costs
- Debt restructuring or low-interest loans
- Direct capital injections for modernization

- **Policy and Regulatory Support**
- Universal Service Obligation (USO) compensation
- Relaxation of regulations to facilitate diversification

- **Infrastructure Development**
- Investment in digital infrastructure and technology upgrades
- Development of logistics hubs and warehouses

- **Partnerships and Collaborations**
- Encourage public-private partnerships (PPPs)
- Facilitate collaboration with other government agencies

- **Tax Incentives**
- Tax relief or reductions on corporate taxes and import duties
- Research and development (R&D) tax credits

- **Support for E-commerce Expansion**
- Promote e-commerce initiatives that benefit Pos Malaysia
- Facilitate cross-border e-commerce and reduce tariffs

- **Workforce Development**
- Develop training programs for new technologies and logistics
- Provide job creation incentives in rural or underdeveloped areas

- **Promotion of Sustainable Practices**
- Offer green incentives for adopting sustainable practices
- Provide grants for sustainability projects

- **Supporting Technological Innovation**
- Fund innovation grants for new technologies and solutions
- Integrate into smart city initiatives

- **Market Expansion Assistance**
- Support expansion into regional and new markets
- Facilitate diversification into new services like fintech and telecommunications

Plenty of chances to slash costs e.g. general & admin costs, etc.


Revenue & Expenses Breakdown
How Pos Malaysia Berhad makes and spends money. Based on latest reported earnings, on an LTM basis.








Postal
RM 1.08b
Aviation
RM 342.36m
Logistics
RM 276.31m
Others
RM 219.91m
Revenue
RM 1.92b
Gross Profit
RM 179.99m
Expenses
RM 373.56m
General & Admini...
RM 284.78m
Sales & Marketin...
RM 29.72m
Non-Operating Ex...
RM 59.06m
Cost of Sales
RM 1.68b
Segment Adjustme...
RM 57.83m
Earnings
RM 178.79m

Geely's interest in ensuring that Pos Malaysia becomes profitable can be understood from a few strategic and business perspectives:

### 1. **Strategic Investment**
Geely has a track record of making strategic investments in companies that align with its broader business interests. Ensuring that Pos Malaysia is profitable could be part of a strategic move to integrate logistics capabilities into Geely’s ecosystem, especially as logistics and delivery services are crucial for supporting the growth of e-commerce and other digital services.

### 2. **Logistics and Supply Chain Synergies**
Geely, being a major player in the automotive industry, relies heavily on efficient logistics and supply chain management. Pos Malaysia, as a national postal service provider, has extensive infrastructure and networks across Malaysia. If Pos Malaysia is profitable, it could provide Geely with reliable and cost-effective logistics services, supporting its operations not only in Malaysia but potentially in the wider ASEAN region.

### 3. **Market Expansion**
Malaysia is a key market within Southeast Asia, and ensuring Pos Malaysia's profitability could be part of a broader strategy to strengthen Geely's presence in the region. By supporting a major local company like Pos Malaysia, Geely might be positioning itself favorably in the eyes of Malaysian regulators and consumers, which could facilitate further expansion of its automotive and other business interests in Malaysia.

### 4. **Diversification**
Geely might also see an opportunity to diversify its business portfolio by ensuring that Pos Malaysia becomes profitable. Diversification into logistics and postal services could provide Geely with a new revenue stream, reducing its reliance on the automotive sector.

### 5. **Long-Term Value Creation**
Geely may believe that by turning around Pos Malaysia and making it profitable, it can create long-term value. A profitable Pos Malaysia could be leveraged for future business opportunities, partnerships, or even mergers and acquisitions, which could benefit Geely in the long run.

In summary, Geely's interest in ensuring Pos Malaysia's profitability likely stems from a combination of strategic investment goals, the potential for synergies in logistics and supply chain management, market expansion ambitions, diversification of business interests, and the pursuit of long-term value creation.

on average during the next 2 years, revenues in the Logistics industry in Asia are expected to grow by 8.7%.

Price-To-Sales vs Fair Ratio: POS is good value based on its Price-To-Sales Ratio (0.1x) compared to the estimated Fair Price-To-Sales Ratio (0.2x).

Potential to slash costs further e.g. staff, etc. Price-To-Sales vs Industry: POS is good value based on its Price-To-Sales Ratio (0.1x) compared to the Asian Logistics industry average (0.6x).

Price-To-Sales vs Peers: POS is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (0.6x).

Below Fair Value: POS (MYR0.34) is trading below our estimate of fair value (MYR1.14)

Significantly Below Fair Value: POS is trading below fair value

Share Price vs Fair Value
What is the Fair Price of POS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

70.5%
Undervalued
Current Price
RM 0.34
Fair Value
RM 1.14

wait for recovery, free cash flow ada banyak hehe

Cash Runway Analysis
For companies that have on average been loss-making in the past, we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable POS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: POS is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 54% per year.

Drb increases its stake in pos is possible.. Another stimulus yah

### Summary of Pos Malaysia and SingPost Merger Considerations

- **Strategic Alignment**:
- Combine complementary strengths (e.g., SingPost's e-commerce logistics with Pos Malaysia's network).
- Establish a unified vision and growth strategy.

- **Operational Synergies**:
- Integrate logistics networks, sorting facilities, and transportation fleets.
- Harmonize technology platforms for seamless customer experience.

- **Financial and Legal Considerations**:
- Agree on valuation, equity structure, and manage combined assets/liabilities.
- Secure regulatory approvals in Singapore and Malaysia.

- **Cultural Integration**:
- Align corporate cultures and engage employees transparently.
- Address potential cultural differences and management styles.

- **Customer-Centric Focus**:
- Enhance service offerings, delivery times, and customer support.
- Decide on branding strategy for the merged entity.

- **Expansion and Innovation**:
- Leverage the merger to dominate the Southeast Asian market.
- Establish innovation hubs to drive digital transformation and customer experience improvements.

- **Risk Management**:
- Develop a comprehensive integration plan to mitigate risks.
- Prepare contingency plans for regulatory, financial, and operational challenges.

- **Market Communication**:
- Communicate merger benefits to stakeholders and manage public perception.
- Ensure clear messaging to build trust and support.

- **Post-Merger Integration**:
- Implement a phased integration process to ensure smooth transition.
- Monitor performance with established metrics to achieve strategic goals.

### Potential Benefits:
- **Economies of Scale**: Cost savings through combined operations and procurement.
- **Enhanced Market Position**: Dominance in the Southeast Asian postal and logistics market.
- **Innovation Leadership**: Strengthened capabilities in e-commerce and digital services.

### Potential Challenges:
- **Regulatory Hurdles**: Navigating competition laws and approvals.
- **Cultural Differences**: Managing integration of distinct corporate cultures.
- **Operational Disruption**: Potential temporary service disruptions during transition.

To catch up quickly with SingPost, Pos Malaysia would need to undertake an aggressive and well-coordinated strategy focused on both immediate improvements and long-term investments. Here’s how Pos Malaysia could do it:

### 1. **Accelerate Digital Transformation**
- **Rapid Deployment of Technology**: Pos Malaysia should invest heavily in automation, artificial intelligence (AI), and data analytics to streamline operations, optimize routes, and enhance customer service.
- **E-commerce Integration**: Develop partnerships with major e-commerce platforms for seamless integration, providing end-to-end logistics solutions. Expanding capabilities in warehousing, last-mile delivery, and cross-border services will be crucial.
- **Enhance Digital Platforms**: Improve and expand the functionality of Pos Malaysia’s mobile apps and website, allowing customers to access a broader range of services online, such as tracking, payments, and real-time customer support.

### 2. **Strategic Alliances and Partnerships**
- **Collaborate with Global Logistics Companies**: Form alliances with established global logistics companies to improve international reach and service quality. This could include partnerships for cross-border shipping, warehousing, and supply chain management.
- **Partner with Tech Firms**: Engage with technology companies to co-develop new digital solutions, such as automated sorting systems, drone delivery, and AI-driven customer support.

### 3. **Expand Service Offerings Quickly**
- **Launch Financial Services**: Fast-track the introduction of financial products such as insurance, remittances, and small loans, leveraging the existing postal network.
- **Property and Asset Utilization**: Quickly monetize underutilized real estate assets by converting them into revenue-generating properties (e.g., retail spaces, warehouses) or selling off non-core assets.

### 4. **Operational Efficiency Boost**
- **Implement Lean Management**: Adopt lean management principles to reduce waste, cut costs, and improve efficiency across all operations. This could include revising logistics routes, reducing manual handling, and improving fleet management.
- **Automation and Robotics**: Invest in robotics for sorting centers and warehouses to speed up processing times, reduce errors, and lower labour costs.

### 5. **Customer-Centric Innovations**
- **Improve Customer Experience**: Introduce innovative customer services such as flexible delivery options, real-time tracking, and personalised notifications. Enhancing customer experience should be a priority to increase customer loyalty and satisfaction.
- **Community Hubs**: Convert post offices into community hubs offering a variety of services beyond postal, such as internet access, printing, and governmental services, similar to SingPost's "Smart Post Office" concept.

### 6. **Expand Regional Footprint**
- **Regional Hubs**: Establish regional logistics hubs within Southeast Asia to serve as gateways for international e-commerce and logistics. This would position Pos Malaysia as a key player in the region.
- **Cross-Border E-commerce**: Focus on expanding cross-border e-commerce solutions by setting up partnerships and agreements with neighbouring countries to facilitate smoother logistics and customs processes.

### 7. **Agile and Adaptive Leadership**
- **Empower Leadership**: The management team should be agile and willing to adapt quickly to changes in the market. Leadership should focus on rapid decision-making and foster a culture of innovation within the company.
- **Talent Acquisition and Development**: Recruit industry experts with experience in logistics, digital transformation, and e-commerce to drive the changes. Additionally, upskill current employees to handle new technologies and business models.

### 8. **Public-Private Collaboration**
- **Government Support**: Work closely with the Malaysian government to secure funding, favourable policies, and infrastructure development that can support the expansion and modernization efforts.
- **Incentivize E-commerce Growth**: Collaborate with local governments to incentivize e-commerce businesses, making Pos Malaysia their preferred logistics partner.

By aggressively implementing these strategies, Pos Malaysia could quickly narrow the gap with SingPost and strengthen its market position both domestically and regionally.

Pos Malaysia can learn from Singapore Post (SingPost) by adopting several strategies to improve profitability. Here are some key areas where Pos Malaysia might imitate SingPost:

### 1. **Digital Transformation and E-commerce Focus**
- **E-commerce Logistics**: SingPost has heavily invested in e-commerce logistics, becoming a key player in the region's e-commerce boom. Pos Malaysia could expand its e-commerce capabilities, including last-mile delivery services, warehousing, and cross-border logistics.
- **Digital Services**: SingPost has diversified into digital services like online payment solutions and digital mailroom services. Pos Malaysia could explore similar digital avenues to complement traditional postal services.

### 2. **Diversification of Services**
- **Financial Services**: SingPost offers a range of financial services, including insurance, which provides an additional revenue stream. Pos Malaysia could consider expanding into financial products and services.
- **Property Management**: SingPost has leveraged its real estate, transforming underutilized spaces into profitable assets. Pos Malaysia could explore opportunities in property management or leasing unused postal properties.

### 3. **Strategic Partnerships**
- **Collaborations**: SingPost has formed strategic partnerships with global e-commerce and logistics companies. Pos Malaysia could benefit from similar partnerships to enhance its service offerings and reach.
- **Innovation and Technology Partners**: Collaborating with tech companies could help Pos Malaysia improve efficiency and reduce costs through automation and advanced logistics technologies.

### 4. **Operational Efficiency**
- **Streamlining Operations**: SingPost has invested in automating and optimizing its operations, leading to cost savings and increased efficiency. Pos Malaysia could focus on streamlining its logistics, including route optimization, automated sorting, and more efficient fleet management.
- **Customer Experience**: SingPost has enhanced its customer service through digital platforms, making it easier for customers to track packages and access services. Pos Malaysia could improve its digital platforms and customer service experience.

### 5. **International Expansion**
- **Regional and Global Reach**: SingPost has expanded its services beyond Singapore, becoming a regional logistics hub. Pos Malaysia could explore expanding its services regionally, leveraging Malaysia's strategic location in Southeast Asia.

By adopting these strategies, Pos Malaysia could potentially enhance its profitability and competitiveness, following the successful model of SingPost.

$POS (4634.MY)$

This is a battle of the hearts and minds. The company has a bad reputation and perception.

I can see that the company is attempting to win the hearts and minds of customers through a variety of promotions, road shows, online advertisements, relevance to younger people, and so on.

I think the cost of sales was high due to the company spending a lot of money to diversify the business i.e. POS shop, POS fulfil, POS aviation, POS logistics, POS digicert, Gold pawnshop etc.
Pos Malaysia won't be bankrupt, just not a favorite stock. If you need money and decide to sell, which counter will you buy? If you have no idea, simply hold it like a buffett. Long-term results can be positive.

If another rate increase is anticipated for Pos Malaysia, it is likely due to:

1. **Ongoing Cost Pressures**: Continued rises in operational costs, such as fuel, maintenance, and wages, may necessitate further adjustments in rates.

2. **Financial Sustainability**: To ensure long-term financial health and reduce dependence on government support, additional rate hikes might be needed.

3. **Service Expansion and Improvement**: Further investments in service enhancements, technology upgrades, and expanded coverage can drive the need for higher rates.

4. **Market Adjustments**: As the postal industry evolves and faces new challenges, rate adjustments may be required to stay competitive and meet changing demands.

Such rate increases are generally aimed at maintaining the quality and reliability of postal services while addressing economic realities.

The Malaysian government has decided to support Pos Malaysia indefinitely to ensure the continuity of essential postal services across the country. This support is crucial for several reasons:

1. **Universal Service Obligation**: Pos Malaysia provides universal postal services, which are essential for communication and connectivity, especially in remote and rural areas.

2. **Economic and Social Impact**: The postal service plays a significant role in the economy and social structure, facilitating the delivery of parcels, documents, and other important items.

3. **Financial Stability**: The government’s support helps maintain Pos Malaysia's financial stability and allows it to continue operating despite challenges such as declining mail volumes and competition from digital services.

4. **Employment**: Pos Malaysia is a major employer in Malaysia, and government support helps preserve jobs and livelihoods.

Overall, the support reflects the government’s commitment to maintaining vital infrastructure and services for the public.

Yes, when a company like Geely starts buying shares of another company like Pos Malaysia from the open market, it can lead to a significant increase in the share price. This is often due to increased demand for the shares and the market's perception of the investment as a positive signal. It can also create a sense of confidence among other investors, leading them to buy shares as well, which further drives up the price.

Geely buying a stake in Pos Malaysia directly in the open market is likely due to the current undervaluation of Pos Malaysia's shares, allowing Geely to acquire a significant stake at a lower cost. This approach also provides Geely with immediate market access and the ability to quickly influence Pos Malaysia’s strategic direction without the need for lengthy negotiations or regulatory approvals.

DRB-HICOM could potentially allow Geely entry into Pos Malaysia relatively quickly—within a few months to a year—if both parties agree on terms and swiftly navigate regulatory approvals and integration processes. The speed would depend on the complexity of negotiations, due diligence, and alignment on strategic goals.

Turning Pos Malaysia profitable within a year is ambitious but possible if Geely implements rapid, effective operational improvements, invests strategically, and addresses key challenges swiftly. However, achieving profitability so quickly would require significant and immediate adjustments to existing strategies and performance.

DRB-HICOM should let Geely acquire a stake in Pos Malaysia to leverage Geely's expertise in turnaround strategies, access to new technologies, and financial resources, which could enhance Pos Malaysia's competitiveness and profitability, benefiting both companies.

Geely is the best partner to make Pos Malaysia profitable again due to its proven track record in transforming struggling companies like Proton, its strategic expertise in supply chain and logistics, and its ability to inject capital and innovation to modernize operations and drive growth.

Acquiring a stake in Pos Malaysia is a small investment for Geely because Pos Malaysia's shares are currently undervalued, allowing Geely to gain significant control at a lower cost with potential for high returns as the company rebounds.