Pos Malaysia falls as 9M profit misses forecast

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KUALA LUMPUR (Feb 27): Pos Malaysia Bhd shares fell as much as 32 sen or 6% after the company said net profit dropped to RM9.48 million in the third quarter ended Dec 31, 2017 (3QFY18) from RM33.41 million a year earlier.

Yesterday, Pos Malaysia said 9MFY18 net profit fell to RM64.22 million from RM71.99 million a year earlier. Today, analysts said Pos Malaysia's 9MFY18 results missed expectation.

At 10.22am today. Pos Malaysia shares were traded at their lowest so far at RM4.67. The stock was transacted between RM4.67 and RM4.95 so far today.

RHB Research Institute Sdn Bhd analyst Michelle Foong wrote in a note today: "Pos Malaysia reported a 9MFY18 (Mar) headline NP (net profit) of RM64 million (-11% y-o-y) and core NP of RM48 million (-24% y-o-y). At 48% of our and consensus' FY18 estimates, the results were lower than expected. While revenue grew a strong 26% y-o-y on consolidation of acquisitions and moderating decline in traditional mail operations, earnings missed."

Foong said RHB retained its Pos Malaysia earnings forecast and the stock's "buy" call with an unchanged target price of RM6.30. She said RHB issued its Pos Malaysia note ahead of Pos Malaysia's analysts briefing today.