Pos Malaysia Shares Fall 2% After CEO Resigns - Shares in Pos Malaysia fell almost 3% in early trade on Tuesday following the resignation of the company’s CEO.
Shares in the postal company dropped to RM5.24, a loss of 15 sen or 2.78%, shortly after the exchange opened. It is currently the third top losers. The counter has gained over 36% year-to-date.
Pos Malaysia announced that its group CEO Datuk Mohd Shukrie Mohd Salleh is stepping down on Dec 31 after five years with the company, citing his desire to make a career change.
He will be replaced by Datuk Azlan Shahrim, who will report to the board of directors until a suitable candidate is appointed.
Shukrie has served DRB-Hicom
,the parent company of Pos Malaysia, for 12 years, including serving the national postal company for five years.
“We expect the market to likely view the resignation of Shukrie as a negative, and believe near-term share price would be impacted on the back of this,” RHB Research said.
It added that during Shukrie’s tenure as group CEO at POS Malaysia since Nov 2015, the company had provided better clarity on management strategies and had seen the acquisition and consolidation of several logistics assets – which resulted in the gradual improvement in earnings.
“We maintain BUY and our DCF-based target price of RM6.30 (17% upside), on the assumption that management’s recent initiatives on cost optimisation and new product offerings would remain on track.
“We continue to view Pos Malaysia as fundamentally strong in its position to capture the growth of e-commerce in Malaysia, which should mitigate the decline in its postal operations,” RHB said.
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