Posted by calvintaneng > 2016-12-17 12:48 | Report Abuse

DRB/POS has 700 Pos Offices Malaysia Wide.

As Central as KL City & as far flung as Pengerang Pos Office.

These 700 Pos Office will be transformed into Goods & Services Distribution Centers in the rising industry of ECommerce.

These stores will be hit: Parkson, Metrojaya, Courts Mammoth and other Departmental Stores.

All goods distribution will by pass these middle businessmen.

It is distribution From Source to Consumers

http://www.thestar.com.my/business/business-news/2016/10/11/pos-malaysia-plans-to-provide-logistics-services-to-alibaba/

DRB manufactures Trucks for ECommerce Goods Delivery

https://www.google.com.sg/search?q=drb+hicom+truck&rlz=1C1CHBD_enSG711SG711&tbm=isch&tbo=u&source=univ&sa=X&ved=0ahUKEwjrmKeKtPrQAhUYTY8KHY-OCv0QsAQIIQ&biw=1680&bih=920

Posted by aidwiz > 2016-12-17 14:55 | Report Abuse

is this a chun chun call?

Posted by calvintaneng > 2016-12-17 15:16 | Report Abuse

aidwiz is this a chun chun call?
17/12/2016 14:55

Calvin thinks this is a great few baggar stocks at the least

TIME.COM up 800%

Faber (Edgenta) up 500%

DRB will go up how many %?

Posted by staind86 > 2016-12-17 16:08 | Report Abuse

I read your article on this with interest. However, I have some thoughts and doubts on this.

I remember Jack Ma was once quoted that for e-commerce, the most important infrastructure is information flow, cash flow, and DELIVERY. He was also once quoted to say that Alibaba is a logistics company (or something like that) where he says the limitation to e-commerce is on delivery. As long as can deliver, then they can see everything online.

Largest e-commerce in Malaysia is Lazada. and Lazada is owned by Alibaba now after the USD1bil acquisition. For Lazada, they developed their own delivery service called Lazada Express (LEX). I personally find their delivery service as being very fast and good, better than POS Laju where you get this card on mailbox and they ask you to go self-collect which takes very long time.

What I noticed,
Lazada - LEX and GDex mostly.
11Street - GDex and Post Laju
Zalora - GDex
Taobao - Ezbuy self collection
* based on my observations. not limited to these couriers.

I think, POS Laju is mostly used by individual seller (maybe smaller scale seller).

In China, Alibaba is teaming with courier companies to improve the delivery service. For seller, I think the main attraction for seller will be cheap. For buyer, you will see buyers usually review of price, product authenticity, and delivery speed. On thing on both sides of the platform is being low cost.

Since you mentioned about Jack Ma developing e-commerce in Malaysia, what is your views on this, especially his strategy in China. I believe he will copy the idea. fyi, Amazon, Walmart etc are also paying attantion on delivery service now.

So, the question is can Pos Laju fight this?

http://www.businessinsider.com/alibaba-has-an-ambitious-plan-to-handle-delivery-logistics-2016-7

Posted by calvintaneng > 2016-12-17 16:28 | Report Abuse

Staind86,

Yes, I am fully aware of what you stated.

GD Express & LEX deliver mostly bulky articles like Aircond, TV, furniture & fridge while POS delivers smaller parcels.

That was because POS did not expand into more bulky handling of white goods.

That is the reason why DRB has injected its logistic & warehouses into POS. DRB manufacture delivery trucks & also motorbikes.

Online Marketing is still in its infancy in Malaysia while Malls & Mega Shopping Malls dominate the Retail Scene now.

All this will change with the Onward March of Internet Online Marketing which will save costs for consumers from 25% to 80% of the cost.

And as for Cost, right now POS rates is only half of those other courier companies. By improving its delivery system and raising rates to just 10% to 15% discount to these other courier competitors POS/DRB will capture the lion shares!

Remember, Pm Najib is going into a win-win JV with JackMa. No one party win more or win less. Just like the win-win partnership bet Iskandar & Singapore.

And so there is bright future for POS/DRB

One more thing.

Before even Alibaba existed POS has been here for 200 years. Now with 700 POS Offices Nationwide there is a strategic grasp of the Market Place.

Posted by calvintaneng > 2016-12-17 16:46 | Report Abuse

e-commerce boom propels Pos Laju to be main contributor for the postal services group

PETALING JAYA: Not wanting to be left behind by the e-commerce boom, Pos Malaysia Bhd is counting on its courier services to be the main driver of growth within the next two years.

At the moment, the revenue generated from the traditional mail and courier services of Pos Laju is even.

According to group chief executive officer Datuk Mohd Shukrie Mohd Salleh, its Pos Laju service would be its main revenue generator by its next financial year ending March 31, 2018 (FY18), driven by rising demand for e-commerce.

At the moment, the Pos Laju service accounts for nearly one-third of total earnings.

“This year will be the final year when our mail business will be bigger than our Pos Laju business,” he told StarBiz during a visit to Menara Star yesterday.

“I am pretty confident that by looking at the numbers now, by next year, Pos Laju will be bigger than our mail business.”

Shukrie said year-on-year earnings from its mail business were shrinking slowly.

“Mail contribution is slightly over one-third, but it’s declining between 4% and 5% every year. Pos Laju, meanwhile, has been growing between 20% and 30% every year.

“Next year, I’m confident it will surpass our mail business. Right now, they are almost on par in terms of earnings.”

For its FY16, Pos Malaysia’s mail segment registered a higher revenue of RM905.4mil compared with RM741.7mil in the previous corresponding period, due to higher revenue in the transhipment business instead of a net drop in the traditional mail volume.

Its courier segment, meanwhile, registered a higher revenue of RM556.1mil compared to RM480.2mil, driven by increased demand from e-commerce.

Malaysia’s biggest beneficiary in the e-commerce space is GD Express Carrier Bhd (GDex), whose revenue is less than half of what Pos Laju is generating. For its FY15 ended June, GDex registered an earnings before interest, tax, depreciation and amortisation of RM41.4mil, indicating a margin of 20%. It commands a market capitalisation of RM2.14bil.

As for Pos Laju. according to Pos Malaysia’s annual report, the segment contributed RM55.4mil to the group’s results on a turnover of RM556.1mil, indicating a margin of 10%.

Pos Malaysia’s market capitalisation is RM1.64bil.

On another matter, Shukrie said the injection of DRB-Hicom’s logistics assets into Pos Malaysia would bode well for the postal services company as it planned to cater to the growth of e-commerce.

“For the last 200 years, Pos Malaysia’s operations have been last-mile operations. That’s how we’ve been doing business.

“But anything from first mile and in between, we have to use a third party. Over time, the margin is being compressed. It would be good if we’re in control of the entire chain end-to-end.”

Shukrie said Pos Malaysia was “going big” into e-commerce now, adding that it was the way forward for the company.

“And for us to do that, we need a warehouse specifically for e-commerce.”

Last December, DRB-Hicom had proposed to inject its logistics assets such as KL Airport Services Sdn Bhd and a parcel of freehold industrial land in Shah Alam into Pos Malaysia.

DRB-Hicom, which already owns a 32.21% stake in Pos Malaysia, will be issued with 245.75 million new Pos Malaysia shares for those assets.

“The best way to do that is to use a facility that’s readily available for us. It will provide between 1.5 million sq ft and 1.7 million sq ft of warehouse,” said Shukrie.

“We also plan to buy a piece of land in Shah Alam and convert it into an e-commerce warehouse as well as for automotive logistics.”