8/13/2019 Pos Malaysia Tumbles on Poor Results - Business News _
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Pos Malaysia tumbles on poor results
PETALING JAYA: Shares of Pos Malaysia Bhdplunged 12.7% yesterday
to RM4.62 after dismal third quarter
results and a weak earnings outlook prompted analysts to
downgrade the stock.
AmResearchanalyst Wong Joe Vueiwrote in his report that Pos
earnings in the quarter and the year-to-date
were below expectations, accounting for only 59% of his full
year estimate and 62% of consensus estimates.
We revise our FY2014-FY2016 forecast earnings downwards by
8%-10%, as we adjust our earnings before
interest taxes depreciation and amortisation to account for the
higher operating expense.
We also raise our effective tax rate assumption from 25% to 28%,
Wong said.
Wong kept his hold call on the stock with a target fair value of
RM5.80.
For the third quarter ended Dec 31, 2013, Pos Malaysias net
profit declined to RM22.83mil from RM51.6mil inthe same period
previously. Revenue, however, rose to RM329.74mil from RM313.26mil
previously.
Kenanga Researchin its report also downgraded its FY2014 and
FY2015 forecast net profits by 5%, taking into
account these higher operating costs.
The research house also reduced its target price from RM5.39 to
RM5.13 based on an unchanged 15 times
2014 revised earnings per share of 34.2 sen.
Hong Leong Researchretained its hold rating on the stock with a
lowered target price to RM5 from RM5.53
based on an unchanged 16 times FY2015 price to earnings
ratio.
According toBloombergstatistics, most analysts had a hold call
on the stock with a consensus average
12-month price target of RM5.36.
On its outlook moving forward, Kenanga Researchsees Pos growing
its profitable courier and logistics
businesses which will have strong synergies from its 32% owner
DRB-Hicomand the companys unit Kuala
Lumpur Airport Servicesthat will create an efficient logitics
management service.
Hong Leong said forward positives for Pos included strong growth
opportunities on synergies with its major
shareholder DRB-Hicomand the newly-acquired Konsortium
Logistics.
On the flipside, however, Hong Leong noted that negatives that
could weigh Pos were huge staff numbers, its
operation in a highly regulated industry, and with fortunes tied
to the price of crude oil.
By the end of the trading day, both its shares and call warrants
topped the losers list with its warrants Pos-CL
declining 30 sen to 34 sen and Pos-CM losing 20.5 sen to 14
sen.
Malaysia tumbles on poor results - Business News | The Star
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http://www.thestar.com.my/Business/Business-News/2014/02/21/Pos-...
1 2/21/2014 8:31 AM
