Stock Name: AIRPORT
Company Name: MALAYSIA AIRPORT HOLDINGS BHD
Malaysia Airports Holdings Bhd
(Sept 29, RM5.33)
Maintain buy at 5.35 with target price of RM7.55: MAHB's July 2011 traffic statistics revealed a respectable 13.4% year-on-year (y-o-y)'' passenger growth (7M 2011: +12.7% y-o-y). This is way ahead of regional and global growth rates which underpins our positive stance for MAHB. Cargo volumes saw signs of a recovery with volume growth of 2% y-o-y (7M 2011: -1.8% y-o-y).
Maintain 'buy'; no change to our earnings forecasts and RM7.55 per share discounted cash flow-based target price. KLIA is a formidable Southeast Asian hub. KLIA continues to surprise positively by delivering an impressive 12.7% y-o-y passenger growth (7M 2011: +13.3% y-o-y). If KLIA can maintain this growth momentum for the remainder of the year, it will probably register traffic of 38 million to 39 million passengers; thus making it the 25th to 27th busiest airport in the world ' up from 31st in 2010.'' ''
MAHB's passenger traffic growth of 13.4% in July significantly outpaced the Asia-Pacific's average growth of 5.5% and world's average growth of'' 5%. Its cargo shipment'' has also fared better with 2% growth as opposed to a contraction of 1.8% in Asia-Pacific and a 5.6% decline for world average.
The strong traffic statistics suggested that AirAsia, MAS and Firefly will report a strong traffic growth running up to 3Q. But the yield environment will be challenging as the industry grapples with excess capacity and customers are disinclined to pay higher fares. We expect MASKargo to show improved performance compared with 1H.'' ''
Share price collapse presents attractive value. MAHB's share price has plunged by 17.5% since our post 2Q results commentary dated July 29 due to the intense volatility of global equity markets. We think this presents an excellent entry point as the company's fundamentals remain solid with continued strong passenger growth, high utilisation rate of primary asset (KLIA is ''85%),'' and it is'' trading at 10.8 times 2012 PER and 9.1 times 2012 EV/Ebitda ' cheap against its historical average. ' Maybank IB Research, Sept 29
This article appeared in The Edge Financial Daily, September 30, 2011.
Company Name: MALAYSIA AIRPORT HOLDINGS BHD
| Research House: MAYBANK | Price Call: BUY | Target Price: 7.55 |
Malaysia Airports Holdings Bhd
(Sept 29, RM5.33)
Maintain buy at 5.35 with target price of RM7.55: MAHB's July 2011 traffic statistics revealed a respectable 13.4% year-on-year (y-o-y)'' passenger growth (7M 2011: +12.7% y-o-y). This is way ahead of regional and global growth rates which underpins our positive stance for MAHB. Cargo volumes saw signs of a recovery with volume growth of 2% y-o-y (7M 2011: -1.8% y-o-y).
Maintain 'buy'; no change to our earnings forecasts and RM7.55 per share discounted cash flow-based target price. KLIA is a formidable Southeast Asian hub. KLIA continues to surprise positively by delivering an impressive 12.7% y-o-y passenger growth (7M 2011: +13.3% y-o-y). If KLIA can maintain this growth momentum for the remainder of the year, it will probably register traffic of 38 million to 39 million passengers; thus making it the 25th to 27th busiest airport in the world ' up from 31st in 2010.'' ''
MAHB's passenger traffic growth of 13.4% in July significantly outpaced the Asia-Pacific's average growth of 5.5% and world's average growth of'' 5%. Its cargo shipment'' has also fared better with 2% growth as opposed to a contraction of 1.8% in Asia-Pacific and a 5.6% decline for world average.
The strong traffic statistics suggested that AirAsia, MAS and Firefly will report a strong traffic growth running up to 3Q. But the yield environment will be challenging as the industry grapples with excess capacity and customers are disinclined to pay higher fares. We expect MASKargo to show improved performance compared with 1H.'' ''
Share price collapse presents attractive value. MAHB's share price has plunged by 17.5% since our post 2Q results commentary dated July 29 due to the intense volatility of global equity markets. We think this presents an excellent entry point as the company's fundamentals remain solid with continued strong passenger growth, high utilisation rate of primary asset (KLIA is ''85%),'' and it is'' trading at 10.8 times 2012 PER and 9.1 times 2012 EV/Ebitda ' cheap against its historical average. ' Maybank IB Research, Sept 29
This article appeared in The Edge Financial Daily, September 30, 2011.
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