Friday 29 Mar 2024
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KUALA LUMPUR (June 29): AmInvestment Bank has maintained “hold” on Pos Malaysia Bhd at 56 sen with a lower fair value (FV) of 52 sen (from 75 sen) and said following a recent company meeting, it now expects a wider FY22 net loss of RM99 million (from RM89 million previously) as well as a slight net loss of RM10 million for FY23 (from net profit of RM3 million previously) to mainly account for lower mail and parcel volumes.

In a note on Wednesday (June 29), the research house nevertheless said it  projects the company to return to profitability in FY24 with a net profit of RM48 million on improved profit margins following the implementation of various cost-saving initiatives such as workforce reduction and consolidation of mail and parcel networks.

“Moving forward, we foresee prospects for its parcel delivery business to remain challenging as it cannot fully capitalise on the ever-growing e-commerce transaction volume amid lower parcel volume from major e-commerce players.

“Meanwhile, we also gather that its mail operation continues to see a gradual decline in volume in tandem with the ongoing global trend towards online and virtual communications.

“However, the logistics and aviation segments are expected to achieve commendable recovery supported by the normalisation of operations amid the reopening of international borders,” it said.

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