Stock Name: MAS
Company Name: MALAYSIAN AIRLINE SYSTEM BHD
Research House: TA
TA has maintained its "hold" rating on MAS with a target price of RM2.50, citing delayed delivery of A380s to MAS.
"We are dismayed by this news as this is the third time Airbus had announced delays in delivering the A380s to MAS," says the research outfit.
MAS' parent company Penerbangan Malaysia Bhd (PMB) had initially ordered the six A380s in 2003 for delivery from January 2007 to December 2008.
Nonetheless, the delivery of the aircraft was deferred to January 2011 and then to August 2011 due to production rampup issues.
To recap, in December 2009, MAS has proposed to acquire the six undelivered A380sand a bundle of 4 Boeing aircraft (2 B777 and 2B747) from PMB, for about RM3.2 billion.
PMB has agreed to pay the liquidated and ascertained damages - post-acquisition that potentially compensated by Airbus to MAS. The total compensation receivable from PMB/Airbus in connection with the delay is estimated to be in excess of RM330 million.
Company Name: MALAYSIAN AIRLINE SYSTEM BHD
Research House: TA
TA has maintained its "hold" rating on MAS with a target price of RM2.50, citing delayed delivery of A380s to MAS.
"We are dismayed by this news as this is the third time Airbus had announced delays in delivering the A380s to MAS," says the research outfit.
MAS' parent company Penerbangan Malaysia Bhd (PMB) had initially ordered the six A380s in 2003 for delivery from January 2007 to December 2008.
Nonetheless, the delivery of the aircraft was deferred to January 2011 and then to August 2011 due to production rampup issues.
To recap, in December 2009, MAS has proposed to acquire the six undelivered A380sand a bundle of 4 Boeing aircraft (2 B777 and 2B747) from PMB, for about RM3.2 billion.
PMB has agreed to pay the liquidated and ascertained damages - post-acquisition that potentially compensated by Airbus to MAS. The total compensation receivable from PMB/Airbus in connection with the delay is estimated to be in excess of RM330 million.
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