Stock Name: AIRPORT
Company Name: MALAYSIA AIRPORT HOLDINGS BHD
Research House: MIDF
Malaysia Airports Holdings Bhd (MAHB)
(May 18, RM4.99)
Maintain neutral at RM4.98 with a higher target price of RM5: MAHB posted a revenue of RM436.4 million, which was 25.2% and 24.8% of consensus' and our full-year forecast.
The higher revenue is due to the strong growth in passenger, traffic and aircraft movements in 1Q10 as leisure and business travel continue to recover. However, net profit fell by 21.1% year-on-year (y-o-y), which is only 18.2% of our full-year forecast as we had underestimated the income tax expense for the quarter. The variance is also attributable to the adoption of FRS139, which resulted in marked-to-market losses for MAHB's holdings in an associate company.
Passenger movement in 1Q10 grew by 21% y-o-y, showing four consecutive quarters of growth. However, on a sequential quarter basis, it declined by 7.7% quarter-on-quarter (q-o-q). This is as expected as the first quarter is traditionally a slow period following the festive holidays in the previous quarter. ''
Overall aircraft movement for 1Q10 increased by 11.5 % y-o-y, with the international aircraft segment growing by 12.9% y-o-y. As expected, the cargo movement would be a beneficiary of continuing global recovery and an increased in exports. Cargo movement registered a growth of 21.6% y-o-y in 1Q10.
Total revenue per passenger movements declined 7.1% y-o-y to register RM31.83 suggesting that the travellers at the airport were spending less in 1Q10.
However, the non-aeronautical revenue per passenger movement declined only marginally by 0.5% y-o-y to RM15.12, and on a sequential quarter basis it showed a 10% q-o-q increase. This suggests a further potential for MAHB to grow its retail business.
Although, MAHB posted a lower-than-expected net profit, we are not concerned of its prospects. Operationally, MAHB remains strong as its operating profit grew 19.5% y-o-y to RM150.4 million. We expect that the net profit will pick up especially in the third and fourth quarters. However, we believe that the market has already factored in MAHB's potential.
Therefore, we maintain our neutral recommendation of the stock with a revised target price of RM5, based on a PER (price-earnings ratio) of 13.8 times, which is a 7% discount to regional peers' average multiple of 14.8 times. ' MIDF Research, May 18
This article appeared in The Edge Financial Daily, May 19, 2010.
Company Name: MALAYSIA AIRPORT HOLDINGS BHD
Research House: MIDF
Malaysia Airports Holdings Bhd (MAHB)
(May 18, RM4.99)
Maintain neutral at RM4.98 with a higher target price of RM5: MAHB posted a revenue of RM436.4 million, which was 25.2% and 24.8% of consensus' and our full-year forecast.
The higher revenue is due to the strong growth in passenger, traffic and aircraft movements in 1Q10 as leisure and business travel continue to recover. However, net profit fell by 21.1% year-on-year (y-o-y), which is only 18.2% of our full-year forecast as we had underestimated the income tax expense for the quarter. The variance is also attributable to the adoption of FRS139, which resulted in marked-to-market losses for MAHB's holdings in an associate company.
Passenger movement in 1Q10 grew by 21% y-o-y, showing four consecutive quarters of growth. However, on a sequential quarter basis, it declined by 7.7% quarter-on-quarter (q-o-q). This is as expected as the first quarter is traditionally a slow period following the festive holidays in the previous quarter. ''
Overall aircraft movement for 1Q10 increased by 11.5 % y-o-y, with the international aircraft segment growing by 12.9% y-o-y. As expected, the cargo movement would be a beneficiary of continuing global recovery and an increased in exports. Cargo movement registered a growth of 21.6% y-o-y in 1Q10.
Total revenue per passenger movements declined 7.1% y-o-y to register RM31.83 suggesting that the travellers at the airport were spending less in 1Q10.
However, the non-aeronautical revenue per passenger movement declined only marginally by 0.5% y-o-y to RM15.12, and on a sequential quarter basis it showed a 10% q-o-q increase. This suggests a further potential for MAHB to grow its retail business.
Although, MAHB posted a lower-than-expected net profit, we are not concerned of its prospects. Operationally, MAHB remains strong as its operating profit grew 19.5% y-o-y to RM150.4 million. We expect that the net profit will pick up especially in the third and fourth quarters. However, we believe that the market has already factored in MAHB's potential.
Therefore, we maintain our neutral recommendation of the stock with a revised target price of RM5, based on a PER (price-earnings ratio) of 13.8 times, which is a 7% discount to regional peers' average multiple of 14.8 times. ' MIDF Research, May 18
This article appeared in The Edge Financial Daily, May 19, 2010.
No comments:
Post a Comment