KUALA LUMPUR – Kenanga Research has doubled Pos Malaysia Bhd’s financial year 2021 (FY21) estimated net loss to RM226.5 million as the lockdown will continue to weigh on the postal and logistics segments.
However, the research firm anticipated the lockdown to fully end by December and has maintained the company’s estimated net profit for FY22 at RM62.2 million, on post-pandemic recovery.
Hence, it has maintained a ‘market perform’ rating on Pos Malaysia with an unchanged target price of RM0.80.
In the first half of its financial year ended December 31, 2021, Pos Malaysia’s net loss widened to RM120.1 million compared with Kenanga’s full-year net loss estimate of RMRM118.3 million and consensus estimate of RM65.8 million.
The weaker performance was following the decrease in mail and parcel volume handled, especially from contract customers, affected by another lockdown which started in June 2021.
However, this was cushioned by stronger revenue in the logistics segment from freight management business and automotive business, as well as recovery in its aviation division’s revenue with increased contribution from e-commerce warehousing and cargo and ground handling businesses with better cost management.
On outlook, Kenanga Research has projected the courier business to improve on e-commerce demand but will continue to operate in a competitive environment pressured by price and cost challenges. – Bernama, August 17, 2021
