RHB maintains 'buy' on Pos Malaysia

KUALA LUMPUR: RHB Research has kept its earnings estimates on Pos Malaysia Bhd on optimism over the postal operator's turnaround prospects and leading position in the parcel delivery market.

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
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RHB Research , Pos Malaysia


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