February 25, 2011

AIRASIA - OSK Research maintains Buy on AirAsia, unch TP RM3.86

Stock Name: AIRASIA
Company Name: AIRASIA BHD
Research House: OSK

KUALA LUMPUR: OSK Research said'' AirAsia ended the financial year Dec 31, 2010 with a core net profit (including associates contribution) of RM874 million, in line with its forecast of RM904 million but above consensus.

It said on Friday, Feb 25 that the low cost carrier's core earnings (excluding associates) soared 173% on-year on the back higher yields from ancillary income amid an improving load factor, which enhanced its fleet mileage.

'While jet fuel price is a prevalent risk, we believe the situation is temporary. Furthermore, AirAsia has lined up several initiatives to counter rising jet fuel price should the Middle East turmoil prolong. We maintain our BUY call on AirAsia at an unchanged TP of RM3.86,' OSK Research said

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