Retail News CRM

Tag: pos malaysia

  • Pos Malaysia’s Q4 profit nearly triples to RM29m on higher contribution from courier biz

    Pos Malaysia’s Q4 profit nearly triples to RM29m on higher contribution from courier biz

    Pos Malaysia Bhd’s net profit for the fourth quarter ended March 31, 2018 almost tripled to RM29.03 million from RM9.89 million a year ago, mainly due to higher contribution from the courier business coupled with improved cost management.

    Against the same quarter the previous year, its revenue increased 3% to RM653.08 million from RM653.55 million.

    For the full year period, Pos Malaysia’s net profit jumped 13.9% to RM93.25 million from RM81.88 million a year ago, while revenue was up 18.7% to RM2.47 from RM2.08 billion.

    Pos Malaysia the group’s future performance is mainly driven by the continued growth in e-commerce.

    “Technology and e-commerce remains a key platform to spur the growth of small and medium enterprises (SMEs) within the country. As the key player in the e-fulfilment space and with the widest last mile delivery network, the group is a key beneficiary of e-commerce growth in Malaysia. This will also benefit our end-to-end logistics businesses as heightened economic activity should increase the need for our services. Accordingly, we are generally optimistic Pos Malaysia’s prospects remain positive.”

    Pos Malaysia’s share price fell 5 sen or 1.4% to close at RM3.55 on some 197,200 shares done.

  • Pos Malaysia taps Alibaba Group for growth

    Pos Malaysia taps Alibaba Group for growth

    Malaysia’s biggest postal company is seeking a more direct role in providing logistics services to Chinese e-commerce giant Alibaba Group Holding Ltd, tapping a boom in online retailing.

    Pos Malaysia Bhd plans talks with Alibaba this month on bypassing the middlemen when shipping goods sold on its platforms, Mohd Shukrie Mohd Salleh, its chief executive officer, said. Surging parcel deliveries for online shopping drove a 40% jump in profit in the fiscal first quarter and full-year earnings will be higher than a year earlier, he said.

    “My focus is still e-commerce, and it is driving the logistics business. When e-commerce is booming, somebody needs to deliver these items,” Mohd Shukrie, 42, said in an interview at the company’s headquarters in Kuala Lumpur on Sept 27. “Marketplace owners wants to deal with logistic players directly. I’m going to China to meet up with Alibaba and other market players” in October, he said.

    Postal companies in Asia are remodeling themselves by expanding overseas to meet rising demand spurred by a global retail e-commerce market valued at about US$1.2 trillion by the Universal Postal Union. Pos Malaysia, which started work in the early 1800s delivering mail by bicycle, is the top performer this year among 14 global courier stocks with a market value of at least US$500 million, recording a total return of 49%, beating United Parcel Service Inc and FedEx Corp.

    Pos Malaysia stock has soared 88% from a February low as record earnings from its courier business and a potential increase in tariffs for the first time in six years buoyed the shares. The government is examining its proposal for higher postal rates, said Mohd Shukrie. The company is valued at 25 times its 12-month projected earnings, versus 18 for UPS, the world’s most valuable courier company.

    Alibaba said its delivery affiliate Cainiao Smart Logistics Network Ltd “works collaboratively with logistics participants to enhance customer experience and operation efficiency. “It is natural we talk to industry participants,” it said in an e-mailed statement in response to queries by Bloomberg News.

    While Pos Malaysia handles parcel deliveries for Alibaba through freight forwarders, or so-called consolidators such as Japan’s Sankyu Inc, the Kuala Lumpur-based company wants to deal directly with these marketplace owners, said Mohd Shukrie.

    Eliminating Middlemen

    “The future is about cutting the middleman, and the existence of consolidators will be under threat,” he said. “Right now, we deal more with consolidators for parcels from China to the world, but understandably marketplace owners want to deal with logistic players directly.”

    Consolidators collect and group outward-bound cross-border mail to specific destinations and negotiate special rates with the public postal operators to distribute the bulk mail in the designated countries.

    Singapore Post Ltd, which counts Alibaba as its second-biggest shareholder, said a year ago it plans to expand freight services and warehouses in the US and Europe as Asia’s emerging middle class drives online purchases from overseas.

    “The potential is quite huge for e-commerce,” Lim Sin Kiat, an analyst at Hong Leong Investment Bank Bhd in Kuala Lumpur, said by phone. “Clients are looking for fully integrated services, and it’s still a work in progress for Pos Malaysia to be fully integrated.” Lim has a buy call on the company with a target price of RM3.87. The stock climbed 1.3% to RM3.90 as of 9:58am in Kuala Lumpur, near the highest level in more than a year.

    Logistics Acquisition

    In September, Pos Malaysia completed the purchase of KL Airport Services Sdn Bhd from parent DRB-Hicom Bhd, controlled by businessman Tan Sri Syed Mokhtar Al-Bukhary. The move will boost revenue to RM2 billion (US$482 million) in the year ending March 2018 and allow the company to offer more logistics services overseas, said Mohd Shukrie.

    KL Airport now has two aircraft and the capability to pick up cargoes from the region including Hong Kong, he said. It can expand the fleet by one plane annually in the next five years in tandem with business growth, said Mohd Shukrie, who mentioned Ingvar Kamprad, Ikea’s billionaire founder as an inspiration for building a steady and sustainable business.

    “The pie is growing very fast, we do not want to settle with growing with the market, we want to grow more than the market,” he said.

    Lees ook:

  • Pos Malaysia Q1 net profit jumps 40% to RM32mil

    Pos Malaysia Q1 net profit jumps 40% to RM32mil

    Pos Malaysia Bhd’s net profit for its first quarter ended June 30, 2016 grew 40% to RM31.84mil, from RM22.74mil a year ago, despite operating in the current challenging environment, said group chief executive officer Datuk Mohd Shukrie Mohd Salleh.

    The increase was due to higher profits generated from its courier segment that was driven by demand from its e-commerce and online businesses. First quarter revenue rose to RM415.87mil from RM390.37mil a year earlier.

    Shukrie said Pos Malaysia is focussing to transform itself into a one-stop fully integrated logistics services provider through the recently approved and soon-to-be-completed corporate exercise of acquiring Kuala Lumpur Airport Services Sdn Bhd (KLAS) group of companies.

    The company will also introduce more new 24/7 e-commerce convenient touch points when it unveils a slew of new services. The company will also enhance facilities at all Pos Laju Centres and post offices nationwide. It is planning a total of 110 more touch points from the current total of 1,030 throughout Malaysia by end of 2016, Shukrie said.

    In a separate Bursa filing yesterday, the company said its courier segment registered higher revenue of RM162.8mil in the first quarter of this year compared with RM148.1mil a year ago.

    The upward performance was driven by increase in demand from e-commerce, the company said. Its postal services segment registered lower revenue of RM206.7mil in the first quarter of 2016 compared with RM230.6mil a year ago.

    “This is due to lower revenue for direct mail for mail segment and decrease of transactions from bill payment for retail segment,” Pos Malaysia said.

    Its international segment registered lower revenue by RM16.4mil as compared to RM36.1mil a year earlier due to lower transactions from transhipment business segment.

    Meanwhile, Pos Malaysia’s other segments which consist of digital certificates, printing and insertion registered higher revenue by RM7.8mil in the first quarter of this year due to higher business volume attributed to sales of digital certificates, as well as printing and insertion.

    Going forward, the company said its longer term prospects remain closely tied to the growth in the fulfilment and delivery of merchandise arising from the growth of e-commerce.

    “Investments by global e-commerce giants into the South-East Asia’s e-commerce players, for example the acquisition of Lazada by Alibaba, support the growth and development of the industry in the region.”