Stock Name: MAS
Company Name: MALAYSIAN AIRLINE SYSTEM BHD
MAS is expected to record better fourth quarter financial year results as the national carrier is seasonally stronger due to the year-end holidays, says HwangDBS Vickers Research.
It said the profit is expected to increase as the management continues its network rationalisation exercise and stabilising jet fuel prices also support the bottom line.
"There are signs of operational improvements in MAS this quarter, as the third quarter results are better compared with the second quarter, despite a seasonally weaker quarter due to the Hari Raya holidays, it said in a statement.
The research firm maintains its "buy" call with RM1.85 target price.
In a separate note, OSK Research said MAS' quarter-on-quarter losses narrowed in the third quarter on the back of a smaller jet fuel bill and yield improvements.
"However, this is still wider than expected as its nine-month financial year core loss of RM962 million already accounted for 102-104 per cent of our prediction and consensus full-year forecasts, respectively," it said.
OSK said the bigger-than-expected loss was due to higher jet fuel expenses, up 37 per cent year-on-year.
"Although its non-fuel-related expenses are lower by two per cent year-on-year, we feel the airline's cost-cutting measures are not aggressive enough.
"We also reaffirm our "sell" call on the stock, with an unchanged fair value of RM1.15," it added.
MAS yesterday announced RM478 million net loss for the third quarter of this year ended Sept 30.
It attributed the loss to higher fuel costs and unrealised foreign exchange losses from outstanding US dollar borrowings. The cumulative year-to-date net loss for the group stood at RM1.247 billion. -- Bernama
Company Name: MALAYSIAN AIRLINE SYSTEM BHD
| Research House: HWANGDBS | Price Call: BUY | Target Price: 1.85 |
MAS is expected to record better fourth quarter financial year results as the national carrier is seasonally stronger due to the year-end holidays, says HwangDBS Vickers Research.
It said the profit is expected to increase as the management continues its network rationalisation exercise and stabilising jet fuel prices also support the bottom line.
"There are signs of operational improvements in MAS this quarter, as the third quarter results are better compared with the second quarter, despite a seasonally weaker quarter due to the Hari Raya holidays, it said in a statement.
The research firm maintains its "buy" call with RM1.85 target price.
In a separate note, OSK Research said MAS' quarter-on-quarter losses narrowed in the third quarter on the back of a smaller jet fuel bill and yield improvements.
"However, this is still wider than expected as its nine-month financial year core loss of RM962 million already accounted for 102-104 per cent of our prediction and consensus full-year forecasts, respectively," it said.
OSK said the bigger-than-expected loss was due to higher jet fuel expenses, up 37 per cent year-on-year.
"Although its non-fuel-related expenses are lower by two per cent year-on-year, we feel the airline's cost-cutting measures are not aggressive enough.
"We also reaffirm our "sell" call on the stock, with an unchanged fair value of RM1.15," it added.
MAS yesterday announced RM478 million net loss for the third quarter of this year ended Sept 30.
It attributed the loss to higher fuel costs and unrealised foreign exchange losses from outstanding US dollar borrowings. The cumulative year-to-date net loss for the group stood at RM1.247 billion. -- Bernama
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