February 28, 2011

MAS - OSK maintains 'neutral' call on MAS

Stock Name: MAS
Company Name: MALAYSIAN AIRLINE SYSTEM BHD
Research House: OSK

OSK Research has set a higher target price of RM1.76 for Malaysian Airline System Bhd (MAS) against its earlier target of RM1.58.

"We reiterate that the stock's valuation remains unattractive," it said, besides upgrading the stock to a "neutral" call.

MAS closed financial year 2010 with a better core net loss of RM28.5 million against RM643 million in 2009 on the back of RM13 billion in revenue.

"Its full-year core losses were lower than our RM69.2 million estimates and consensus of RM102 million," it said in a research statement today.

OSK also said the better-than-expected numbers, on a full year basis, were fuelled by positive cost efficiencies achieved on a per available seat kilometre basis.

"However, we have since tweaked our financial year 2011 earnings downwards by 14.1 per cent in view of our higher jet fuel price assumption," it added. -- Bernama

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