Kenanga Research revises upward MAHB's FY13, FY14 estimates

Kenanga Research revises upward MAHB's FY13, FY14 estimates
Business & Markets 2013
Written by Bernama
Wednesday, 24 July 2013 15:13

KUALA LUMPUR, (July 24): Kenanga Research has revised upward, Malaysia Airports Holdings Bhd's financial years 2013 and 2014 estimates by 18 per cent and six per cent respectively, following the better results announced yesterday.

The research house said based on this, it had revised the airport operator's passenger traffic and CONSTRUCTION [] profit assumptions higher.

"We are optimistic over the outlook of airports given the steady increase in passenger traffic in the Asia Pacific, supported by a rise in air travel demand, coupled with the reinstatement of routes by some airlines as well as entry of new ones," it said in a research note here Wednesday.

Kenanga Research upgraded MAHB's stock to "outperform" from "market perform" given a higher upside potential to a new target price of RM7.72 from RM6.71 previously.

Meanwhile, in separate notes, Maybank Investment Research and HwangDBS Vickers Research, both maintained a "hold" call on MAHB.

Maybank Investment said it had lowered the 2013 earnings forecast by 3.7 per cent to take into account the higher headcount and maintenance cost.

It said the stock is trading close to fair value and trading multiples are in line with other global peers.

HwangDBS Vickers Research, meanwhile, expects a near term share price upside to be capped by valuations.