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NewsRHB Research maintains Market Perform on AirAsia, FV RM3.87 (5099)
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RHB Research maintains Market Perform on AirAsia, FV RM3.87 (5099)
by hlk Fri 27 Jul 2012, 11:54
KUALA LUMPUR: RHB Research Institute is maintaining its Market Perform recommendation on AirAsia with a fair value of RM3.87.
It said on Friday AirAsia was raising its bet on the low-cost air travel market in Indonesia with the acquisition of a 100% stake of Batavia Air for US$80m (RM240mil) cash. The acquisition was with its local partner, PT Fersindo Nusaperkasa.
“The acquisition enables AirAsia's fleet size in Indonesia to triple from 18 to 55 overnight, domestic capacity share to also to triple from 3% to 10%, domestic route network in terms of destination number to increase by five times from eight to 41, coupled with a significant expansion in domestic distribution channels.
“Based on a net profit of US$5mil (RM15mil), the historical acquisition PER works out to be 16 times that is not excessive. Assuming Batavia Air is to sustain US$5mil (RM15mil) net profit, the acquisition will boost AirAsia's FY12/13 net profit by RM1.5mil or 0.2%,” said RHB Research
It said on Friday AirAsia was raising its bet on the low-cost air travel market in Indonesia with the acquisition of a 100% stake of Batavia Air for US$80m (RM240mil) cash. The acquisition was with its local partner, PT Fersindo Nusaperkasa.
“The acquisition enables AirAsia's fleet size in Indonesia to triple from 18 to 55 overnight, domestic capacity share to also to triple from 3% to 10%, domestic route network in terms of destination number to increase by five times from eight to 41, coupled with a significant expansion in domestic distribution channels.
“Based on a net profit of US$5mil (RM15mil), the historical acquisition PER works out to be 16 times that is not excessive. Assuming Batavia Air is to sustain US$5mil (RM15mil) net profit, the acquisition will boost AirAsia's FY12/13 net profit by RM1.5mil or 0.2%,” said RHB Research
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