MAHB
KUALA LUMPUR: Kenanga Investment Bank Research maintained its overweight rating on the aviation sector on the back of AirAsia’s high passenger load factors driven by stronger travel demand and additional capacities coupled with the sale of their leasing arm Asia Aviation Capital.
It said on Wednesday that over the second quarter ended June 30, 2017 (2QCY17), the low-cost carrier’s share price improved 7%.
The factors were: (i) disposal of AACE (for US$100mil) followed by dividends of 12.0 sen a share, and (ii) the sale of AAC coming closer to fruition with a potential round of special dividends – expected to be concluded by 2H17.
Meanwhile, Malaysia Airports Holdings Bhd
’s (MAHB) share price remained relatively unchanged over the period.
From January-August, MAHB’s total passenger traffic (for both Malaysia and Turkey) was up 9.1% which was in line with the research house’s 9.2% target.
“Maintain outperform call with an unchanged target price of RM4.05 for AirAsia.
“Following a share price correction since our last downgrade, we now upgrade MAHB back to market perform with an unchanged target price of RM8.38 as we believe the downside has been largely discounted,” it said.
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