Good Articles to Share

Author: Tan KW   |   Latest post: Fri, 18 Jan 2019, 05:43 PM


Aircraft sale positive sign AirAsia progressing well in asset divestment, says MIDF Research

Author:   |    Publish date:

KUALA LUMPUR (Jan 10): AirAsia Group Bhd still intends to dispose of the five aircraft which have not been transferred to its intended purchasers, in the future, according to MIDF Amanah Investment Bank Bhd Research.

In a note today, the research house opined the fact that 79 aircraft have already been transferred to the purchasers under the disposal of its aircraft leasing business is a positive sign the airline has progressed well in divesting its non-core assets.

In addition, the proposed sale of 25 aircraft to Merah Aviation Holding Ltd, an indirectly controlled entity of Castlelake L.P., will further dispose of AirAsia's non-core assets.

MIDF Research estimates the increase in depreciation charges on the five aircraft to be minimal at only 1.4% which will be partially offset by the lease income obtained.

"As such, we are maintaining our earnings estimates for FY18 and FY19 at this juncture," it said.

Yesterday, AirAsia announced that the transfers of aircraft and aircraft engines under the sale and purchase agreement with entities managed by BBAM Ltd Partnership — Herondell SPA, Incline B SPA and FLY SPA — have been completed with the exception of five aircraft which are currently leased to third party airlines by its wholly-owned subsidiary Asia Aviation Capital Ltd (AACL). The estimated enterprise value of the five aircraft is US$173.67 million (RM711.27 million).

AirAsia said the five aircraft will not be transferred to the purchasers as the agreements have now lapsed. Therefore, only 79 aircraft have been transferred from the 84 aircraft agreed under the disposal of its aircraft leasing business for US$1.185 billion.

MIDF Research has maintained its buy call on AirAsia with an unchanged target price of RM3.48 per share.

"We continue to like AirAsia as the company continues enhance its cost structure via digitalisation efforts.

"Overall, we are sanguine on the prospect of AirAsia predicated on stable demand growth with conservative average available seat kilometers (ASK) expansion of 13.3% so far in FY18, and resilient load factor despite volatile fuel price," it added.

At 11.35am, AirAsia fell 2% or 6 sen to RM2.94 with 7.37 million shares traded.



Share this

Related Stocks

Chart Stock Name Last Change Volume 
AIRASIA 3.04 -0.01 (0.33%) 3,216,200 

  Be the first to like this.
supersaiyan3 Wrong also.

Merah is owned by Airasia. The sale is to sell Merah to Castlelake.

It shows (again) how incompetent are our analysts.
11/01/2019 00:01


402  326  492  672 

Top 10 Active Counters
 ARMADA 0.22+0.06 
 SAPNRG 0.285-0.005 
 SUMATEC 0.005-0.01 
 MYEG 1.01-0.06 
 BARAKAH 0.08+0.02 
 NEXGRAM 0.020.00 
 IRIS 0.15+0.005 
 XINGHE 0.045+0.005 
 KNM 0.09+0.01 
 ECONBHD 0.515+0.045 


1. 火中取栗拼油气(下) 菜鸟必学7招/冷眼 【冷眼专栏】漫漫投资路
2. 当遇上基本面投资法(上) “反向”战略非唱反调/冷眼 【冷眼专栏】漫漫投资路
3. Stocks on Radar - AirAsia Group (5099) AmInvest Research Reports
4. FPI FY19 revenue growth expected to hit 15% FPI 2大因素前景看好台灣聯友今年再 尋突破
5. [转贴] 真实还原97亚洲金融风暴,韩国从暴富到破产仅用时7天! Good Articles to Share
6. Stocks on Radar - Elsoft Research (0090) AmInvest Research Reports
7. JAKS Resources Berhad - RM25.5m P&L Hit PublicInvest Research
8. THE PERCEPTION OF P/E or: How I learned to fear my Wife the bursa journey that worked for me. 2000-2019
Partners & Brokers