POS (RM4.45) – Recent selldown from weaker results due to higher staff and transportation cost presents a buying opportunity as valuations is compelling compared to industry peers. Transportation cost which account for 13% of overall cost will naturally be lower with current sharp dip in oil prices. Earnings growth is still mainly driven by its courier services with its 5 yr transformation plan in place to ensure earnings stability. Trading at only 14.8x forward PE vs SingPos 22.8x and global average 20x, we rate it a buy with an immediate target of RM5.00.(DN)
YTLPower (RM1.51) – Current weakness attributable to its expiry of its domestic PPAs in Sept 2015. However there is a strong likelihood of an extension with the reserve margin falling below acceptable levels with the immediate shutdown. Major shareholders have also been adding to their holdings to currently 49.9%. The stock is trading off its low of RM1.43 with an immediate upside of RM1.80. Buy with a current attractive yield of 6.6%. (DN)
