Analysts maintain 'outperform' on POSM

Kenanga Research is maintaining its 'outperform' call on Pos Malaysia Bhd (POSM) and has increased its target price
to RM4.90 from RM4.20 previously.

"Management
is banking on higher profits from its profitable courier and logistics
segment through leveraging on its numerous Pos Laju centres in the
country.

"The group is also strengthening its retail segment,
making it a one-stop solution centre, especially with the growth of its
Islamic pawn-broking (Ar-Rahnu) business," it said in a research note
today.

Kenanga Research increased Pos Malaysia's financial year
2014 earnings estimates by eight per cent by factoring in a higher
growth for the mail, courier and retail segment.

Meanwhile, RHB Research maintained its 'buy' call on POSM with a target price of RM5.20.

"Pos Malaysia (POSM)'s financial year 2013 results came in softer than our and street estimates.

"Its mail segment recorded decent growth but the courier and retail segments were hit by higher staff cost.

"Nonetheless, growth is still strong and we remain positive on the company's outlook," it said in a research note.

HwangDBS
Vickers Research, on the other hand, maintained its 'buy' call on POSM
and increased its target price to RM5.60, from RM4.60 previously, based
on sum-of-part (SOP) valuation.

"The SOP valuation is attributed to rolling forward mailing business valuation to financial year 2015 earnings.

"It
is also attributed to increasing mailing business' valuation to 13
times the price earnings, from 12 times, supported by expected increase
in synergies with DRB-HICOM's Group of Companies and courier segment's
better margins and growth potential," it added in a note.-- Bernama