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 25): DRB-Hicom Bhd has received positive calls from analysts after recording a strong net profit in the fourth quarter of the financial year ended Dec 31, 2020 (4QFY20), surging 20.8 times year-on-year (y-o-y) to RM986 million.
Kenanga Research, in a note on Thursday, maintained its outperform call on the company with a sum-of-parts (SOP)-derived target price (TP) of RM2.50.
In terms of the automotive segment, analyst Wan Mustaqim Wan Ab Aziz said the group s marques are expected to boost its sales performance by featuring new or revised models amid the current sales tax exemption period.
On Pos Malaysia Bhd s performance, he said despite the challenging environment, Pos Malaysia s ongoing transformation efforts will augment the improved tariff rates and growing demand for e-commerce.
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.
KUALA LUMPUR (Dec 30): Analysts foresee a stronger recovery path for the automotive sector after the government announced a six-month extension to the new vehicle sales tax exemption until June 30, 2021.
Kenanga Research’s analyst Wan Mustaqim Wan Ab Aziz upgraded the automotive sector to overweight from neutral as he envisaged stronger recovery in 2021 with total industry volume (TIV) target at 585,000 units.
He opined that the news is a positive surprise for automakers and consumers which should prompt a buying frenzy over the next few months and relieve back-logged bookings.
“We believe the new volume-driven launches in 4QCY20 (i.e. Proton X50, Honda City and Nissan Almera) could help improve consumer sentiment with back-logged bookings to overflow into 2021 and boosted by the extension of sales and services tax (SST) exemption, seasonal promotions and new launches in the 2H (second half) of the year,” he said.