PETALING JAYA: Nomura Research has raised the target price of Malaysia Airports Holdings Bhd (MAHB) to RM11.18 (from RM11.11) and lifted earnings by 11.1% and 7.3% for financial year 2018 (FY18F) and 2019 (FY19F) respectively on passenger service charge (PSC) equalisation.
Following the Malaysian Aviation Commission’s (Mavcom) announcement of a PSC equalisation at KLIA2 airport from Jan 1, 2018, whereby non-Asean international PSCs have been raised from RM50 to RM73 (versus assumption of RM55 in FY18F and RM60 in FY19F), the research house said it was raising its FY18F/19F core earnings estimates by 11.1%/7.3%.