Growth Prospects

Summary


NATIONAL postal service company Pos Malaysia is all set for some good times ahead, thanks to a potential tariff increase and an acquisition of a rival.

POS Malaysia Bhd has not seen a tariff increase in recent times, but 2010 is poised to be a rewarding year for the national postal service company. The year could also see Pos Malaysia acquiring a sizeable rival that will give it access to higher margin premium offerings.

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Extract


Growth Prospects

The long-overdue tariff hike for Pos Malaysia's mailing segment under PosMel is imminent and once this happens, the company could see its earnings and gross margins growing by about 50% and 20% respectively in 2011, analysts say.

`PosMel is in aggressive talks with the Malaysian Communications and Mul...

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