Friday 29 Mar 2024
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KUALA LUMPUR (Dec 12): Pos Malaysia Bhd shares fell 4.64% at mid-morning today after the national carrier said its group chief executive officer Datuk Mohd Shukrie Mohd Salleh is stepping down on Dec 31 after five years with the company, citing his desire to make a career change.

At 10.25am, Pos Malaysia fell 25 sen to RM5.14 with 195,900 shares done.

Mohd Shukrie will be replaced by Datuk Azlan Shahrim, who will report to the board of directors until a suitable candidate is appointed.

RHB Research Institute Sdn Bhd in a note today said it expects the market to likely view the resignation of Mohd Shukrie as a negative, and believe near-term share price would be impacted on the back of this.

It said during Mohd Shukrie's tenure as group CEO at Pos Malaysia since November 2015, the company had provided better clarity on management strategies and had seen the acquisition and consolidation of several logistics assets, which resulted in the gradual improvement in earnings.

"We maintain Buy and our DCF-based target price of RM6.30 (17% upside), on the assumption that management's recent initiatives on cost optimisation and new product offerings would remain on track.

"We continue to view Pos Malaysia as fundamentally strong in its position to capture the growth of e-commerce in Malaysia, which should mitigate the decline in its postal operations," the research house said.

 

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