MAHB
KUALA LUMPUR: Malaysia Airports Holdings Bhd
(MAHB) is expected to be the major beneficiary from the growth of air travel demand in Malaysia as well as on-going land development initiatives under the KLIA Aeropolis Masterplan, said HLIB Research.
The research house said on Tuesday that it expects continued earnings improvement from MAHB’s Malaysia operations, leveraging on the recovery in growth of air travel demand in 2017.
“Airlines (especially based in Malaysia) have been increasing frequency and connectivity since mid-2016, benefitting MAHB passenger flow and improving both aeronautical and non-aeronautical revenue,” it said in a note.
The research house, which maintained its Buy call on the counter with lower target price of RM9.60, said the recovery of Istanbul Gokcen International Airport (ISGA) traffic in recent months will improve its outlook and monetising of ISGA investment will unlock its valuation.
HLIB Research cut its FY17-19 earnings by 12.1%, 7.7% and 5.5% respectively mainly on lower ISGA rental revenue.
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