Increased competition poses threats to Pos Malaysia
Lazada is expected to be the main tenant of the hub, with Pos Malaysia fulfilling its role as the efulfilment services provider.
KUCHING: Pos Malaysia Bhd ( Pos Malaysia) continues to see double- digit growth, but analysts believe that forward growth rates could be challenged by increasing competitiveness within the industry.
Kenanga Investment Bank Bhd’s research arm (Kenanga Research) in a report, opined, “While ( Pos Malaysia’s) financial year 2017 (FY17) courier revenue did benefit positively from rate hikes, we believe the parcel delivery space will post low-to-mid teens growth moving forward, given the increasing competitiveness of the industry.”
Nevertheless, it pointed out that Pos Malaysia is still expected to retain its market dominance as it has the largest network nationwide. By utilising the old LCCT space, it said the sorting-hub should be commencing operations in the coming months, with major works (such as re-flooring of premises, ICT infrastructures) already completed.
“Lazada is expected to be the main tenant of the hub, with Pos Malaysia fulfilling its role as the
Kenanga Research
efulfilment services provider.
“The commencement of the sorting-hub would be timely to capture Lazada’s single day sales on November 11, which we believe will spur further utilisation for the hub,” it opined.
Meanwhile, having already registered segmental losses of RM19.3 million in the first quarter of 2018 (1Q18), and RM146.5 million in FY17, its postal services segment is expected to continue running at a loss in the foreseeable future, given the inability to close down post- office outlets, the research team said. For cost optimisation measures, it noted that Pos Malaysia is currently in the midst of gradually integrating Pos Laju services in its retail outlets, coupled with route optimisation plans in which parcel and postal would share the same delivery trips.
“Additionally, Pos Malaysia had also introduced new services such as the Pos Laju EziBox, Pos Laju EziDrive-Thru, Pos Laju Prepaid Dropbox and Digital Mailbox.