KLCCP Stapled Group’s earnings are likely hampered by losses from its low occupancy rates in the hotel segment and rental assistance to its tenants and retailers, following the impact of Covid-19.
Pos Malaysia Bhd’s current share price is said to have fallen to its lowest in about 17 years, and such sentiment has led to the notion that the company’s negative updates have been largely priced in its shares which are seen contending with the group’s latest-reported wider net loss.
KUALA LUMPUR (Feb 23): Pos Malaysia Bhd’s record quarterly net loss as a result of a kitchen sinking exercise, did not go down well with investors. The postal group’s share price declined nine sen or 9.14% to 89.5 sen on Tuesday after it reported a net loss of RM232.35 million. The stock hit an intra-day low of 85 sen against the previous day’s closing of 98.5 sen. There were 22.18 million shares changing hands. Year-to-date, the stock has sunk by 26%.
However, not all are having negative views on Pos Malaysia. RHB Investment Bank has maintained its buy call with a target price of RM1.40. “Our discounted-cash flow (DCF)-derived RM1.40 target price is maintained, which implies an undemanding 0.9 times price-to-book value (P/BV) in FY21,” it said.