OSK Keeps Buy On POS On Overseas Purchase Plan

10 Aug 2012

OSK maintains a Buy call on POS Malaysia (4634.KU) with a MYR4.14 target based on 10X FY12 earnings after the company announced at its annual shareholders' meeting that it is in talks to buy a courier company in the Middle East.   "We believe that POS will likely venture into the region's domestic courier segment rather than the international segment," as the region has emerged as the fastest growing consumer market, the house says in a report.  It adds, the company's cash reserve of MYR544 million as on March-end would be enough to fund a prospective acquisition without bloating its capital spending. Shares are 0.3% higher at MYR3.03.