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Pos Malaysia climbs to December high

Wednesday, 10 August 2016

POSMalaysia july16

 

KUALA LUMPUR: Shares of Pos Malaysia surged to RM3.38 on Wednesday the highest since December in 2015, as investors are positive about the revenue growth from its courier business and the corporate exercise with its major shareholder DRB-Hicom.

At midday, its share price had risen 19 sen to RM3.38. There were 3.11 million shares done.

At the current share price, it would make the corporate exercise with DRB-Hicom more attractive for Pos Malaysia shareholders at an issue price of RM3.33 per Pos share.

Last December, DRB-Hicom proposed to inject its logistics assets such as KL Airport Services Sdn Bhd and a parcel of freehold industrial land in Shah Alam into Pos Malaysia.

DRB-Hicom, which already owns a 32.21% stake in Pos Malaysia, will be issued with 245.75 million new Pos Malaysia shares for those assets.

On July 28, DRB-Hicom shareholders approved the exercise to dispose KL Airport Services Sdn Bhd (KLAS) and a parcel of freehold industrial land in Section 28, Shah Alam, Selangor to Pos Malaysia.

KLAS has three main assets, namely, DRB-Hicom Asia Cargo Express Sdn Bhd, KLAS Engineering Services Sdn Bhd and Konsortium Logistik Bhd, which is one of the largest haulage and transport companies in the country.

The deals would be financed with 245.75 million new Pos Malaysia shares at an issue price of RM3.33 per share.

Pos Malaysia’s group chief executive officer Datuk Mohd Shukrie Mohd Salleh told StarBiz recently that its Pos Laju service would be its main revenue generator by its next financial year ending March 31, 2018 (FY18), driven by rising demand for e-commerce. 

At the moment, the Pos Laju service accounts for nearly one-third of total earnings.

“This year will be the final year when our mail business will be bigger than our Pos Laju business,” he said.

For its FY16, Pos Malaysia’s mail segment registered a higher revenue of RM905.4mil compared with RM741.7mil in the previous corresponding period, due to higher revenue in the transshipment business instead of a net drop in the traditional mail volume.

Its courier segment, meanwhile, registered a higher revenue of RM556.1mil compared to RM480.2mil, driven by increased demand from e-commerce.

The injection of DRB-Hicom’s logistics assets into Pos Malaysia would bode well for the postal services company as it planned to cater to the growth of e-commerce.

Source by: The Star Online

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