Stock Name: MAS
Company Name: MALAYSIAN AIRLINE SYSTEM BHD
Research House: AFFIN
Shares of MAS traded higher right after the announcement of its better-than expected Q4 2009 results, gaining some 15 per cent to peak at RM2.19. Share price has since eased slightly to RM2.18, and despite the retracement, valuations is still lofty.
Affin said the target price remains unchanged at RM1.89, pegged to current year 2010 price earning ratio of 21.5 times, in line with the average valuation accorded during the last up cycle back in 2007.
Affin maintains the "reduce" rating on concerns over yields recovery (a function of ticket prices).
It said while the worse may be over, judging by the strong passenger figures reported for Q4 2009 and forward booking trend, heavily discounted airfares are still prevalent.
"This will curb a substantial recovery in yields and hence, profitability. As such, we believe it is still too premature to turn positive on MAS." - Reuters
Company Name: MALAYSIAN AIRLINE SYSTEM BHD
Research House: AFFIN
Shares of MAS traded higher right after the announcement of its better-than expected Q4 2009 results, gaining some 15 per cent to peak at RM2.19. Share price has since eased slightly to RM2.18, and despite the retracement, valuations is still lofty.
Affin said the target price remains unchanged at RM1.89, pegged to current year 2010 price earning ratio of 21.5 times, in line with the average valuation accorded during the last up cycle back in 2007.
Affin maintains the "reduce" rating on concerns over yields recovery (a function of ticket prices).
It said while the worse may be over, judging by the strong passenger figures reported for Q4 2009 and forward booking trend, heavily discounted airfares are still prevalent.
"This will curb a substantial recovery in yields and hence, profitability. As such, we believe it is still too premature to turn positive on MAS." - Reuters
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