Operational efficiency key challenge for Pos Malaysia
A memorandum of understanding (MoU) has been signed between China and Malaysia’s national postal companies.
Read MoreTag: Pos Malaysia
Pos Malaysia earnings to improve starting 2009
Pos Malaysia Bhd, whose share price continues to languish, is expected to register better earnings and growth beginning 2009 following its modernisation plans and the unfolding of Transmile Group Bhd’s turnaround.
The company’s share price has fallen by 33.06% since Jan 2, achieving a high of RM2.52 on Jan 11. On Wednesday, it closed at RM1.66, a three sen drop from Tuesday.
Analysts expected a stronger cash flow from Pos Malaysia following the completion of its RM200 million new mail processing centre in Shah Alam, part of the company’s modernisation plan. The centre is targeted to be operational by the first quarter of 2009.
“Going forward, we expect to see a strong cash flow from Pos Malaysia in 2009, which should register a free cash flow of over 10% during the year,” said Teoh Paul Keng, a senior analyst at HLG Research.
“Under the modernisation plan, the building in Shah Alam is to increase the automation level from 25% to 70%. They have about 3,000 staff in their existing processing centre, the new centre could reduce their manpower by more than 1,000 staff and this could earn them annual cost savings of about RM20 million,” he added.
Teoh expected Pos Malaysia’s cash flow to be more modest this year due to the capital expenditure incurred by the company in the new facility.
He said Pos Malaysia remained an attractive option for investors. “It is still a good time to invest in Pos Malaysia. At present, it is a domestic consumption play, it is also one of the most defensive plays.” HLG Research also has a buy on Pos Malaysia at RM2.50.
Teoh also said its earnings growth would most likely be flat due to the imbalance between the mail growth volume and postal tariff rates. “The mail growth volume goes up an average 3% to 5% every year, but there hasn’t been a hike in postal tariffs.”
Read MorePos Malaysia to keep equity in Transmile
Postal services firm Pos Malaysia will retain its equity of about 15 percent in cargo carrier Transmile , state news agency Bernama reported on Tuesday, quoting Pos chairman Adam Kadir.
Read MoreJapan's Sankyu signs agreement with Pos Malaysia
Major distribution company SANKYU INC. has struck a business cooperation agreement with Pos Malaysia BHD, farming out pickup and delivery of parcels for the Sankyu Business Yu-Pack service in Malaysia to the postal service provider. Developed by Sankyu and Japan Post, the small-lot international door-to-door parcel delivery service for businesses is often used by Japanese firms to export parts and import textile products.
With pickup and delivery offered only in limited areas in Malaysia, the service’s handling of parcels to and from that nation has remained at around 1 ,000 a month.
Sankyu hopes the tie-up will boost the figure to 10,000 by the end of fiscal 2007.
Read MorePos Malaysia and Nationwide Express form strategic partnership
Pos Malaysia and the independent Malaysian parcels firm Nationwide Express have officially launched a strategic partnership. The initiative follows a recent cooperation agreement between the Malaysian postal authority and Singapore Post.
Under the agreement, customers will be able to buy stamps and philatelic items at over 100 Nationwide Express offices across the country. Pos Malaysia has a network of 650 post offices across the south-east Asia state.
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