M & A Securities maintains Hold on AirAsia, raises fair value to RM3.28

M & A Securities maintains Hold on AirAsia, raises fair value to RM3.28
Business & Markets 2013
Written by theedgemalaysia.com
Wednesday, 05 June 2013 08:39


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KUALA LUMPUR (June 5): M & A Securities Research has maintained Hold on AirAsia Bhd and revised upwards the carrier’s fair value to RM3.28 from RM3.22 previously and said AirAsia would not be affected by the delay in the opening of KLIA2, as it has been expected and it has a backup plan to ensure that the impact from the delay will be minimised, citing AirAsia chief executive officer Aireen Omar.

In a note Wednesday, the research house said the completion date for the new low cost carrier terminal (LCCT) KLIA2, has been revised several times due to changes made from the original plan.

“We derived our new Fair Value by pegging to the average 3-year P/E multiple of 10.9x to its EPSFY14F of 33.4 sen and applying a 10% discount to the actual value of RM3.64 due to the i) weaker- than-expected 1Q13 results and ii) negative sentiment of the entry of Malindo Airways.

“Therefore, we maintain our Hold call on AirAsia. We also reduced our net profit forecast for FY13F and FY14F by -13% and -12% respectively,” it said.