POS (4634) - HLIB Research maintains Sell on Pos Malaysia, ups target to RM4.80
April 20, 2015 : 8:29 AM MYT
KUALA LUMPUR (April 20): Hong Leong IB Research has maintained its “Sell” rating on Pos Malaysia Bhd (PosM) at RM5.25 with a higher target price of RM4.80 (from RM3.65) and said PosM pointed out that accounts should be viewed in annual context and not quarterly due to different timing of cost recognitions during the year.
In a note today, the research house said PosM’s management indicated setbacks on few of their initiatives which may potentially impede their targeted growth for revenue and earnings.
It said further risk of margin squeeze when Universal Postal Union raised Malaysia status to ‘Developed Country’, increasing the cost of international mail delivery for PosM
“Maintained Sell on PosM with higher Target Price of RM4.80 based on 18x PE for FY03/16 due to the unjustifiable high valuation, initiative setbacks and lack of corporate disclosure,” it said.
http://www.theedgemarkets.com/
April 20, 2015 : 8:29 AM MYT
KUALA LUMPUR (April 20): Hong Leong IB Research has maintained its “Sell” rating on Pos Malaysia Bhd (PosM) at RM5.25 with a higher target price of RM4.80 (from RM3.65) and said PosM pointed out that accounts should be viewed in annual context and not quarterly due to different timing of cost recognitions during the year.
In a note today, the research house said PosM’s management indicated setbacks on few of their initiatives which may potentially impede their targeted growth for revenue and earnings.
It said further risk of margin squeeze when Universal Postal Union raised Malaysia status to ‘Developed Country’, increasing the cost of international mail delivery for PosM
“Maintained Sell on PosM with higher Target Price of RM4.80 based on 18x PE for FY03/16 due to the unjustifiable high valuation, initiative setbacks and lack of corporate disclosure,” it said.
http://www.theedgemarkets.com/
