Kenanga Research maintains ‘market perform’ rating on MAHB
The research firm also kept its earnings outlook estimate for financial year (FY) 2018-2019.
“MAHB registered a six-month 2018 passenger growth of 5.2 per cent year-on-year to date, which we deem in line with our 8.5 per cent forecast, as we expect stronger growth in the months ahead,” it said in a note today.
Passenger traffic at airports under MAHB, including the Istanbul Sabiha Gokcen International Airport , increased 9.5 per cent year-on-year to 11.2 million in June, the highest growth for the year, the airport operator announced yesterday.
It attributed the high traffic to the Hari Raya Aidilfitri holiday season as well as the two-week mid-term school break in the country.
On news of replacement of the Malaysian Aviation Commission’s Chairman, Kenanga Research believed the anticipated Quality of Service framework would still be implemented by the Commission in the third quarter 2018 for airports, starting with the Kuala Lumpur International Airport (KLIA) and KLIA2, with an objective of achieving a higher quality of service for passengers.
“This could pose downside risks for MAHB’s earnings, given that Mavcom had proposed a financial penalty of up to five per cent of aeronautical revenue, which could dent our FY18 core net profit estimate by seven per cent for every one per cent penalty.
“That said, to mitigate penalties, MAHB had increased its planned capital expenditure to between RM600 million -RM700 million from typically RM300 million in the FY18-19 to upgrade infrastructure, such as trains, baggage systems and toilets,” it said.
At 10.14am, MAHB’s share slipped one sen to RM8.77 with 88,900 shares changing hands this morning. — Bernama
Source: The Malay Mail Online