Maybank KE Research maintains Hold on AirAsia

KUALA LUMPUR: Maybank KE Research is maintaining its Hold recommendation on AirAsia as it awaits value creation from associates' listings and dividends.
“The
downside for this stock is limited in our view, given its strong
balance sheet and value crystallisation from the upcoming listing of its
associates - AirAsia Indonesia and AirAsia X,” it said.
Maybank Research said there was also the prospect of a special dividend after these successful listings.
On
the first quarter results, the research said they were mixed. The core
airline businesses in Malaysia, Thailand and Indonesia performed largely
to expectations but all the joint ventures and associates disappointed.
Overall,
“The Q1, 2013's core net income of RM153.4mil (up 2.9% on-year) makes up 18% of our full year forecast, and 17% of consensus.
“We
maintain our earnings forecasts and RM3 a share target price based on
9.2 times 2013 adjusted EV/EBITDAR - in line with global peers. The
stock is however downgraded to a Hold (from Buy) as it is above our fair
value,” it said.