Pos Malaysia Berhad

Titan Trading Notes For Thursday [3/4/2025]:

KLCI had a decent rebound back towards the 1526 points region with an overall negative market sentiment here as we still saw over 630 counters closing red for the day. Daily trading volume however saw a huge dip back towards the 2.3 billion mark, which is not a good sign.

Main stocks that showed strong buying momentum today would be the likes of CIMB, MYEG, MRDIY, AMBANK, POS, MAYBANK, AVANGAAD, TENAGA, and MRCB. All of which were able to sustain their rallies throughout the day on the top volumes list despite the weak market sentiment.

$CIMB / 1023 (CIMB GROUP HOLDINGS BERHAD) since retracing back towards the RM 7+ support levels over the past 2 days, been able to rebound back strong towards the RM 7.14+ regions today with good volume and buying momentum despite the weak market sentiment.

For now as long as able to sustain above its RM 7+ support, could breakout from its RM 7.35+ major resistance levels to start trending back up towards the RM 7.50+ regions soon in the coming weeks.

Will be monitoring CIMB closely.

$POS / 4634 (POS MALAYSIA BERHAD) since its earlier breakout from its RM 0.21+ main downtrend resistance levels over the past week, been able to sustain the buying momentum and broke out towards the RM 0.275 regions today with good volume and buying momentum despite the weak market.

For now, it's looking quite strong and as long as able to sustain above its RM 0.25+ immediate support, could breakout back towards and beyond its RM 0.30+ major resistance levels soon in the coming weeks for an uptrend continuation pattern.

Will be monitoring POS closely.

Bursa Malaysia still facing foreign fund outflows + retail participation is dropping bit by bit here...whole market is getting dry and we will have to be very patient and wait this out.

Only focus on stronger counters and just monitor closely first until foreign funds come back as buyers soon. When we hit rock bottom, the only way is up.

$POS / 4634 (POS MALAYSIA BERHAD)
Research by Kenanga

KUALA LUMPUR: Communications Minister Fahmi Fadzil has assured that no employee of Pos Malaysia Bhd will be laid off despite the adoption of artificial intelligence (AI) technology in its services.

© New Straits Times Press (M) Bhd

$POS / 4634 (POS MALAYSIA BERHAD)
Research by Kenanga
UNDERPERFORM – TP RM0.30

"Further into Losses”

POS’s 1HFY24 results disappointed on poor cost containment. Its 1HFY24 core net loss expanded 61% YoY as the deteriorating operating environment at its postal segment and logistics services negated the recovery at its aviation services. We widen our FY24- 25F net loss forecasts by 59% and 34%, respectively, reduce our TP by 10% to RM0.30 (from RM0.33) and maintain our UNDERPERFORM call.

Analyst:
Wan Mustaqim Bin Wan Ab Aziz
wanmustaqim@kenanga.com.my

Company Face-Off: $GDEX / 0078 (GD EXPRESS CARRIER BERHAD) vs $POS / 4634 (POS MALAYSIA BERHAD)

GDEX and POS are two famous, well-known express courier companies that have established themselves long in Malaysia. As the last mile delivery space is extremely competitive, their profits were in the red for many quarters, and it still remains to be seen if they are able to turnaround the business. However, there has been news as of late that both players are trying to undergo transformation be it diversifying into sectors such as retail and software as a service (SaaS) or the information technology (IT) segment. Could there be an opportunity for a change for the better? Let’s discuss this further on Stockbit!

For some time now, beleaguered Pos Malaysia Bhd has been attempting to change its fortunes through various transformation strategies.

Change of Company Secretary - NGIAN YOKE FUNG

PETALING JAYA: Pos Malaysia Bhd is expected to gain higher profits as the company accelerates its investments in employees’ health and well-being via its initiative called FIT, says chief executive officer Charles Brewer.

General Meetings: Outcome of Meeting

$POS / 4634 (POS MALAYSIA BERHAD)
Research by Kenanga
Underperform – TP of MYR 0.33

“One-Time Boost to Postal Services”

POS’s 1QFY24 results met expectations. Its 1QFY24 core net loss narrowed 22% YoY driven by some one-time postal services rendered to the government. We are positive on its disposal of a shipping-related unit for RM123.2m cash. However, its conventional mail business will continue to struggle in the digital age. We maintain our forecasts, TP of RM0.33 and UNDERPERFORM call.

Analyst(s):
Wan Mustaqim Bin Wan Ab Aziz
wanmustaqim@kenanga.com.my

$POS / 4634 (POS MALAYSIA BERHAD)

Pos Malaysia Bhd, which posted a smaller net loss in the first quarter ended March 31 (1Q24), remains cautiously optimistic of delivering improved results in 2024.

KUALA LUMPUR: Pos Malaysia Bhd’s net loss for the first quarter ended March 31, 2024 (1Q24) narrowed to RM19.69 million from RM27.66 million a year ago, driven by higher revenue, lower cost of sales and operating expenses. 

© New Straits Times Press (M) Bhd

KUALA LUMPUR: Pos Malaysia Bhd, which posted a smaller net loss in the first quarter ended March 31 (1Q24) remains cautiously optimistic of delivering improved results in 2024.

Change in Boardroom - ENCIK MOHD FARISZAN AHMAD

OTHERSChange in the Composition of the Board Tender Committee

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : NON RELATED PARTY TRANSACTIONSPOS MALAYSIA BERHAD ("POS MALAYSIA" OR "COMPANY")

PROPOSED DISPOSAL

Pos Malaysia Bhd is cautiously optimistic about delivering improved results by banking on its foundation for future growth and ongoing transformation.

Annual Report & CG Report - 2023

Proposed Renewal of Shareholders' Mandate for Existing Recurrent Related Party Transactions of a Revenue or Trading Nature and Proposed New Shareholders' Mandate for Additional Recurrent Related Party Transactions of a Revenue or Trading Nature

General Meetings: Notice of Meeting

SEAPORT & LOGISTICS
$WPRTS / 5246 (WESTPORTS HOLDINGS BERHAD) $BIPORT / 5032 (BINTULU PORT HOLDINGS BERHAD) $POS / 4634 (POS MALAYSIA BERHAD) $SWIFT / 5303 (SWIFT HAULAGE BERHAD)
Research by Kenanga
Neutral

“Red Sea Conflict Disrupts Asia-Europe Trade”

We maintain NEUTRAL on the sector. The prolonged war in the Middle East with no immediate sign of the Red Sea conflict de-escalating is weighing down on the Asia-Europe trade. The World Trade Organisation (WTO) said in end-Feb 2024 that it is cutting its current projection of 3.3% growth in global merchandise trade volume in CY24, also quoting lower water levels in Panama Canal due to an extreme drought, which is disrupting the movement of shipping liners. We also acknowledge that global trade will have to navigate stricter regulations on carbon emissions. However, we continue to see a bright spot in the domestic logistics sector, which is a beneficiary of the booming e-commerce. We do not have any top pick for the sector.

Analyst(s):
Wan Mustaqim Bin Wan Ab Aziz
wanmustaqim@kenanga.com.my

SEAPORT & LOGISTICS
$BIPORT / 5032 (BINTULU PORT HOLDINGS BERHAD) $POS / 4634 (POS MALAYSIA BERHAD) $SWIFT / 5303 (SWIFT HAULAGE BERHAD) $WPRTS / 5246 (WESTPORTS HOLDINGS BERHAD) $PMETAL / 8869 (PRESS METAL ALUMINIUM HOLDINGS BERHAD)
Research by Kenanga
Neutral

“4QCY23 Report Card: Red Sea Raises Red Flag”

The sector’s earnings delivery (against our expectations) was more subdued sequentially in the recently concluded 4QCY23 results season. We downgrade our sector call to NEUTRAL from OVERWEIGHT as a prolonged war in the Middle East, particularly, the escalating Red Sea conflict of late, is weighing down on the Europe-Asian trade. The World Trade Organisation (WTO) said in end-Feb 2024 that it is cutting its current projection of a 3.3% growth in global merchandise trade volume in CY24, also quoting lower water levels in Panama Canal due to an extreme drought, which is disrupting the movement of shipping liners. We also acknowledge that global trade will have to navigate stricter regulations on carbon emissions. However, we continue to see a bright spot in the domestic logistics sector as it is: (i) driven internally and less directly exposed to external headwinds, and (ii) a beneficiary of the booming e-commerce. We do not have any stock picks for the sector.

Analyst(s):
Wan Mustaqim Bin Wan Ab Aziz
wanmustaqim@kenanga.com.my

Quarterly rpt on consolidated results for the financial period ended 31/12/2023

OTHERSChange in the Composition of the Board Tender Committee

Change in Boardroom - DATO AHMAD SUHAIMI BIN ENDUT

Change in Boardroom - PUAN ROSHIDAH BINTI ABDULLAH (Amended Announcement)

Change in Boardroom - PUAN ROSHIDAH BINTI ABDULLAH

OTHERSPOS MALAYSIA BERHAD ("Pos Malaysia" OR "the Company")
- Change in the Composition of the Board Tender Committee