Highlight MAHB's 3Q net profit surges 41-fold, driven by Turkish ops, higher revenue and passenger traffic

by **Cals** Tue 27 Oct 2015, 23:28

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[size=28]MAHB's 3Q net profit surges 41-fold, driven by Turkish ops, higher revenue and passenger traffic

By Meena Lakshana / theedgemarkets.com | October 27, 2015 : 10:05 PM MYT

KUALA LUMPUR (Oct 27): Malaysia Airports Holdings Bhd (MAHB) ([You must be registered and logged in to see this image.] Valuation: 1.40, Fundamental: 0.80) saw its net profit jump more than 41-fold to RM68.5 million or 1.63 sen per share in the third quarter ended Sept 30, 2015 (3QFY15), from RM1.61 million or 0.12 sen per share a year ago, driven by robust growth from its operations in Turkey which surpassed its passenger growth forecasts, as well as higher revenue and passenger movements at its airports in the current quarter.

Revenue for 3QFY15 increased 50.6% to RM1.02 billion, from RM675.76 million in 3QFY14.

In a filing with Bursa Malaysia today, MAHB said system-wide, it handled 29.7 million passengers in 3QFY15, registering a 10.5% growth over the same corresponding period last year, contributed by both Raya travel and summer holiday travel. Domestic movements increased 13.7%, while international traffic rose 6.8%.

However, the airport operator noted September numbers were lower, partly due to the current haze that affected some of its airports.

"Istanbul Sabiha Gokcen (in Turkey), meanwhile, handled 8.6 million passengers in 3QFY15, up 24.1% from the year-ago period.

For the nine months period (9MFY15), MAHB's net profit dropped 5.7% to RM80.74 million or 2.38 sen per share, from RM85.64 million or 6.41 sen per share a year ago, on higher depreciation and amortisation, operating and finance costs.

Revenue for 9MFY15, however, rose 7.7% to RM2.83 billion, from RM2.63 billion in 9MFY14, mainly attributed by the increase in both airport and non-airport operations segments' revenues.

The passenger movements at the 39 airports operated by MAHB in Malaysia for 9MFY15, increased 1.9% to 62.4 million passengers. Both domestic and international passenger movements increased by 3.5% and 0.2% respectively.

In a statement today, MAHB said going forward, the return of British Airways in May and All Nippon Airways in September, provide the added dynamism required by the aviation industry in Malaysia.

In addition, Air China has returned to KL International Airport in Sepang in October, after a hiatus of three years.

"MAHB looks forward to enjoying an even greater level of connectivity for its passengers with the re-introduction of these airlines, as they recognise the strong growth opportunities that exist in the Malaysian market.

"Istanbul Sabiha Gokcen’s traffic performance remains buoyant and is expected to end the year with a high double-digit growth in the range of 20%, exceeding the 15% growth forecast for the year," it added.

MAHB's (fundamental: 0.8; valuation: 1.4) shares closed 9 sen or 1.65% lower at RM5.37 today, bringing it's market capitalisation to RM8.91 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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