Pos Malaysia & Services has emerged as the best performer on earnings metrics among 26 companies in Malaysia's industrials sector, tracked by at least three analysts, data from Thomson Reuters StarMine shows.
The postal group has an Earnings Quality (EQ) score of 99, the highest in the sector, suggesting strong earnings sustainability over the next 12 months. It also has a perfect SmartHoldings (SH) score of 100, suggesting a potential increase in institutional ownership.
The company's quarterly free cash flow (FCF) increased three fold to 34 million ringgit in June 2012 from the year-ago period. Its quarterly net income also increased 68 percent to 37 million ringgit during the same period.
Of the five analysts tracking the stock, three recommend a "strong buy" or "buy", while two have a "hold" rating.
The stock is up over 14 percent so far this year, while the broader index is up almost 7 percent for the same period, as of Tuesday's close.
On the other end of the spectrum, Malaysian Airline System Bhd lags the sector with an EQ score of 1. CONTEXT:
In August 2012, Pos Malaysia said its net profit for the quarter ended June rose over 70 percent year-on-year to 37 million ringgit, while its revenue increased 8.5 percent to 311.3 million ringgit. [ID: nKLS8G332a]
A high score on StarMine's Earnings Quality model signals strong earnings sustainability over the next 12 months based on a company's past operating performance.
The StarMine SmartHoldings model is a global stock selection model that ranks stocks based on the expected future increase, or decrease, in institutional ownership. (Reporting By Reshma Apte; Editing by Jijo Jacob)