However, the research house, which has a "buy" call on the stock, raised its target price to RM1.45 from RM1.40 previously after rolling forward its base year to FY22, which implies a forward price-book value of 0.9x.
In 2021, Pos's management is on margin improvement, which will entail continued scaling-up of its courier business, digital transformation of its retail business and further cost-down initiatives.
Pos is also a potential beneficiary of regulatory reforms supporting the domestic courier and postal industry.
"Sequentially, POSM is expected to regain its 9M20 recovery trajectory, with its courier business picking up strongly post-4Q20, while its international transhipment business has also resumed.
"FY21-22F capex is guided to remain at