Innovation drives growth for Pos Malaysia
RHB Research has maintained 'buy' call and reaffirmed its bullish view on Pos Malaysia Bhd given the company’s intact
growth and large growth potential.
Pos Malaysia has taken extra steps to solidify its market leadership, backed by a solid balance sheet.
"It's now aggressively spreading its new wings. We remain upbeat on Pos Malaysia’s outlook as all its expansion plans are on track. We believe its growth remains intact, buoyed by strong growth in its supply chain solutions unit, formerly known as the courier division," RHB Research said in a note.
Pos Malaysia has taken new initiatives that yielded positive returns to further improve its earnings power including Pos Hayat and Pos Bestari Life insurance roll out under Pos Assurance arm.
Ar-Rahnu's business expansion provides logistics services, capitalising on its vast post-office network nationwide, extending value-added services to clients through postmen and Direct Mail services expansion to curb the decline in mail volume, it said.
The research house believed Pos Malaysia had larger growth potential compared to Singapore POST whose current business model was approaching maturity stage.-- Bernama