Postal business turnaround key to Pos Malaysia performance

PETALING JAYA: Kenanga Research expects the re-rating catalysts for Pos Malaysia Bhd moving forward will be the sustained turnaround of its postal business and the phasing out of irrational logistics players.

Pos Malaysia posted a core net loss of RM60.7mil in its latest first half of financial year 2026, with narrower losses at its logistics segment and improved profit contribution from the aviation and other (particularly Ar-Rahnu) segments.

Its postal segment continued to drag Pos Malaysia’s performance, despite the closure of all its “Pos Shop” outlets, which is expected to provide cost savings in the next two to three years.

In a note to clients, Kenanga Research said it is cautious on Pos Malaysia due to its conventional mail business that is struggling to turn around in the digital age.

Furthermore, the company’s courier business facing tremendous competition from new players such as J&T Express and Ninja Van that undercut rates aggressively to grow their market share, and its cost-cutting measures being insufficient to counter its weakening core business revenue.

It said the shutdown of Pos Malaysia’s 50 “Pos Shop” convenience store outlets nationwide in July 2026 is expected to result in cost savings ranging from RM5mil to RM10mil over the next three years.

While the standalone retail experiment has ended, core postal and courier services remain fully operational, although select traditional post offices are undergoing routine local relocations or transitions to agent-run networks.