POS (4634) - Stock With Momentum: Pos Malaysia

This article first appeared in The Edge Financial Daily, on August 4, 2016.

POS (4634) - Stock With Momentum: Pos Malaysia

Pos Malaysia Bhd (+ve)

SHARES in Pos Malaysia Bhd (fundamental: 2.2/3; valuation: 1.4/3) rose 6 sen or 2.11% to RM2.90 yesterday, after 8.54 million shares were exchanged. Its 200-day average volume was at 1.01 million shares.

Yesterday was the first time this month the counter has triggered our momentum algorithm.

For the financial year ended March 31, 2016 (FY16), the postal service provider saw its net proft dip 50.34% to RM63.09 million, from RM127.05 million a year ago, due to lower profits from the mail and retail segment because of higher transportation cost.

Revenue, however, grew 15.44% to RM1.72 billion from RM1.49 billion. Pos Malaysia has proposed a first- and single-tier dividend of 11.7 sen per share for FY16, payable on Oct 7.

Pos Malaysia currently trades at a trailing 12-month price-earnings ratio of 24.17 times and is trading at 1.39 times its book value.

POS (4634) - Stock With Momentum: Pos Malaysia