Bursa Alert
Global Market
NewsHot Stock MAHB falls 1.78% on delay in klia2
Page 1 of 1
Hot Stock MAHB falls 1.78% on delay in klia2
by Cals Wed 05 Jun 2013, 12:31
Hot Stock MAHB falls 1.78% on delay in klia2
Business & Markets 2013
Written by Zatil Husna of theedgemalaysia.com
Wednesday, 05 June 2013 11:57
A + / A - / Reset
KUALA LUMPUR (June 5): Malaysia Airports Holdings Bhd (MAHB) fell 1.78% in late morning Wednesday due to the delays of klia2, which is estimated to start operating first quarter next year (1Q14).
As of 11:06 am, the stock hits a new low of RM6.08 after falling 11 sen from RM6.19 with some 44,400 shares done.
Alliance Research analyst Angeline Chin in a research report on June 4 had reiterated ‘neutral’ on MAHB with unchanged target price of RM5.90.
“While we are positive on the long-term fundamentals of MAHB, we believe that these have largely been priced in given its rich valuation,” she said.
She also included the key investment risks, which are: (1) lower passenger movement, (2) outbreak of pandemics and natural disasters, and (3) further delay in the opening of klia2 and cost overruns.
Meanwhile, Maybank Investment Bank Research (Maybank IB) in its report today has upgraded Malaysia Airports Holdings Bhd (MAHB) to a ‘buy’ call from ‘hold’ while raising target price to RM7.20 from RM6.60 previously.
The revisions came from the estimated April 1, 2014 start-up date for klia2 with higher traffic growth rate and the investment tax allowance for klia2, which provides 60% additional allowance for approved investment.
“We estimate lower taxes of RM585 million to RM645 million, ranging on project cost of RM3.9-4.3 billion, for the entire lifecycle of klia2. This adds RM0.15/share to our DCF-based target price,” it said.
“We revise our base case for KLIA2 to start operations in 1 Apr 2014 (versus 28 Jun 2013 previously), with a higher project cost of RM4.3 billion. The additional RM400 million project cost increase will be debt funded.
Maybank IB also said that it thinks a perpetual bond is the most likely debt structure given management’s determination to safeguard its AAA rating for its primary bonds and it cannot afford to raise its gearing ratio by a significant margin.
“We have imputed a RM500 million perpetual bond, with a profit rate of 5.0% into our earnings forecast,” it added.
Business & Markets 2013
Written by Zatil Husna of theedgemalaysia.com
Wednesday, 05 June 2013 11:57
A + / A - / Reset
KUALA LUMPUR (June 5): Malaysia Airports Holdings Bhd (MAHB) fell 1.78% in late morning Wednesday due to the delays of klia2, which is estimated to start operating first quarter next year (1Q14).
As of 11:06 am, the stock hits a new low of RM6.08 after falling 11 sen from RM6.19 with some 44,400 shares done.
Alliance Research analyst Angeline Chin in a research report on June 4 had reiterated ‘neutral’ on MAHB with unchanged target price of RM5.90.
“While we are positive on the long-term fundamentals of MAHB, we believe that these have largely been priced in given its rich valuation,” she said.
She also included the key investment risks, which are: (1) lower passenger movement, (2) outbreak of pandemics and natural disasters, and (3) further delay in the opening of klia2 and cost overruns.
Meanwhile, Maybank Investment Bank Research (Maybank IB) in its report today has upgraded Malaysia Airports Holdings Bhd (MAHB) to a ‘buy’ call from ‘hold’ while raising target price to RM7.20 from RM6.60 previously.
The revisions came from the estimated April 1, 2014 start-up date for klia2 with higher traffic growth rate and the investment tax allowance for klia2, which provides 60% additional allowance for approved investment.
“We estimate lower taxes of RM585 million to RM645 million, ranging on project cost of RM3.9-4.3 billion, for the entire lifecycle of klia2. This adds RM0.15/share to our DCF-based target price,” it said.
“We revise our base case for KLIA2 to start operations in 1 Apr 2014 (versus 28 Jun 2013 previously), with a higher project cost of RM4.3 billion. The additional RM400 million project cost increase will be debt funded.
Maybank IB also said that it thinks a perpetual bond is the most likely debt structure given management’s determination to safeguard its AAA rating for its primary bonds and it cannot afford to raise its gearing ratio by a significant margin.
“We have imputed a RM500 million perpetual bond, with a profit rate of 5.0% into our earnings forecast,” it added.
Cals- Administrator
- Posts : 25277 Credits : 57721 Reputation : 1766
Join date : 2011-09-08
Location : global
Comments : “My plan of trading was sound enough and won oftener that it lost. If I had stuck to it Iâ€
d have been right perhaps as often as seven out of ten times.â€
Stock Exposure : Technical Analysis / Fundamental Analysis / Mental Analysis
Similar topics» MAHB falls to low of RM6.05 on worries about delay in klia2
» Hot Stock MAHB gains 1.3%, KLIA2 delay in focus
» Stock Focus MAHB still a “buy” despite possible delay in klia2 launch
» RHB says "buy" MAHB despite KLIA2 possible delay as fundamentals promising
» Kenanga: MAHB fundamentals still strong despite klia2 delay
» Hot Stock MAHB gains 1.3%, KLIA2 delay in focus
» Stock Focus MAHB still a “buy” despite possible delay in klia2 launch
» RHB says "buy" MAHB despite KLIA2 possible delay as fundamentals promising
» Kenanga: MAHB fundamentals still strong despite klia2 delay
Page 1 of 1
Permissions in this forum:
You cannot reply to topics in this forum