Company Name: MALAYSIA AIRPORT HOLDINGS BHD
|Research House: MIDF||Price Call: BUY||Target Price: 6.72|
MIDF Research cut its target price for Malaysia Airports Holdings Bhd to RM6.72 (US$2.20) from RM7.30 after the announcement of the airport operator's first quarter results on Thursday.
"We are adjusting our target price in conjunction with the private placement of 110 million shares which was completed in March," said the broker in a research note on Friday.
Maintaining its "buy" call on the counter, MIDF lowered its FY12 earning estimates for MAHB by 7.3 percent due to the rising staff cost and utilities fees.
"We reiterate our buy recommendation on MAHB given the steady traffic growth due to air travel boom in the region," the broker said, adding that high traffic growth in Middle East and Asia will have a strong spill-over effect on airport operators.
MIDF added that the completion of the new Kuala Lumpur International Airport 2 (KLIA2) will boost MAHB's retail and rental collections, thus improving its growth outlook.
"KLIA2 is about 54 percent completed and is on schedule. The integrated complex with floor space of 35k sqm will significantly fuel up MAHB's retail and rental collections and enhance the experience of airport users," the broker said. -- Reuters