Company Name: MALAYSIA AIRPORT HOLDINGS BHD
|Research House: OSK||Price Call: BUY||Target Price: 7.36|
OSK Research has maintained its "BUY" call on Malaysia Airports Holdings Berhad (MAHB) with its fair value of shares unchanged at RM7.36.
MAHB announced yesterday that it had entered into a concession agreement with WCT Bhd and Segi Astana SB (SASB) for privatisation of the construction, development and financing of the integrated complex at KLIA2 in Sepang.
It was on a build-operate-transfer model for a 20-year concession period, with an option to extend for another 10 years, it said in a research note.
Under the agreement, SASB will undertake construction of the integrated complex which will comprise a transportation hub, a commercial complex consisting of a shopping mall with a net lettable area of about 350,000 sq ft; and car parks with 6,000 parking bays.
OSK Research said the announcement did not come as a surprise as WCT had said last year that they have secured the concession agreement from MAHB for the complex.
The concession will provide MAHB three-way income -- recurring income from retail royalty, equity account from SASB's earnings given its 30 per cent equity ownership in SASB and dividend cashflow. -- Bernama