AirAsia beats CIMB estimate

AirAsia

KUALA LUMPUR: CIMB Research says AirAsia Bhd’s financial year ended Dec 31, 2015 (FY15) group core net profit of RM653mil is much better than its estimate for a RM41mil loss, even if it strips out RM450mil in maintenance revenue accrual.

“AirAsia group’s eye-popping core net profit of RM653mil was boosted by RM450mil in maintenance reserves transferred from the balance sheet into the revenue line during fourth quarter, but even if we remove this, group profits did exceed expectations,” the research firm said, adding that AirAsia had used the opportunity afforded by the RM450mil boost to revenue by kitchen-sinking various items and as a result net profit was lower at RM554mil.