Stock Name: AIRPORT
Company Name: MALAYSIA AIRPORT HOLDINGS BHD
Research House: KENANGA
Company Name: MALAYSIA AIRPORT HOLDINGS BHD
Research House: KENANGA
Kenanga Research has maintained "outperform" recommendation for Malaysia Airports Holdings Bhd (MAHB) with M6.64 target price as MAHB is still the "winner" above all airlines' uncertainties.
The research firm said higher operating costs and the gestation period needed for KLIA 2 (new low cost carrier terminal) and its losses from associates are main earnings setbacks for the next two years.
"We expect more contributions from retail and rental business from financial year 2012 onwards.
"We laud MAHB's overseas ventures as future earnings booster since the prospects for domestic airport business expansion is limited," it said in a research note.
The RM1.2 billion KLIA 2 is slated for completion in the second quarter of next year.
However, at this juncture, Kenanga Research did not see any earnings implication as the Low Cost Carrier Terminal's (LCCT) current capacity was sufficient for the moment. -- Bernama
The research firm said higher operating costs and the gestation period needed for KLIA 2 (new low cost carrier terminal) and its losses from associates are main earnings setbacks for the next two years.
"We expect more contributions from retail and rental business from financial year 2012 onwards.
"We laud MAHB's overseas ventures as future earnings booster since the prospects for domestic airport business expansion is limited," it said in a research note.
The RM1.2 billion KLIA 2 is slated for completion in the second quarter of next year.
However, at this juncture, Kenanga Research did not see any earnings implication as the Low Cost Carrier Terminal's (LCCT) current capacity was sufficient for the moment. -- Bernama
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