Research firms remain confident of Pos Malaysia Bhd's recovery trajectory to move forward as it is driven by positive catalysts in the domestic and global economy.
According to Bernama, RHB Research remains optimistic about Pos Malaysia's recovery prospects for the year, in line with the widespread reopening of the economy, enhancing the non-postal business segment and the company's focus on improving margins.
"Going into 2021, the focus of management is to increase margins. In terms of operations, this requires vigorous efforts to strengthen the courier business, digital transformation of the retail business and further initiatives in reducing costs.
"Pos Malaysia will continue to be involved with the government on regulatory changes to support the long-term sustainability of the courier industry," said the research firm, which also maintained a 'buy' recommendation on companies with an unchanged target price (TP) of RM1.45.
Meanwhile, AmInvestment Bank took a cautious approach to the survey for Pos Malaysia this year as it felt the company needed time to recover losses and restore confidence following the closure of its main packaging processing center for the period October-November last year as well as full operational recovery from the pandemic.
However, beyond this year, AmInvestment Bank through its research note said that the outlook for the Pos Malaysia parcel delivery segment was positive.
The firm added that the positive outlook was supported by structural changes and consumer choice on the concept of online shopping as well as the freezing of new courier licenses in Malaysia from September 2020 to September 2022 to ensure rational competition in the segment.
