Highlights

Malaysia Airports Holdings Berhad - International Sector Up for Third Straight Month

Date: 13/09/2018

Source  :  MIDF
Stock  :  AIRPORT       Price Target  :  9.88      |      Price Call  :  HOLD
        Last Price  :  8.20      |      Upside/Downside  :  +1.68 (20.49%)
 


INVESTMENT HIGHLIGHTS

  • Total passenger movements for MAHB advanced +2.9%yoy in August 2018
  • International passengers for Malaysia grew by +1.0%yoy
  • KLIA2 mainly contributed to domestic passenger growth
  • 2HFY18 looking good to hit full year estimate
  • Maintain NEUTRAL on the stock with TP of RM9.88

Passenger traffic in August 2018 remained steady. The August passenger traffic for airports in Malaysia saw another positive improvement, growing by +0.9%yoy (excluding ISGA), recording a total of 8.5m passengers. Despite the Turkish Lira crisis, the passenger traffic growth in ISGA for August 2018 remained resilient at +8.5%yoy, bringing the total passenger number under MAHB’s network of airports to 11.8m or +2.9%yoy higher. This overall number of passengers was amongst the highest achieved thus far and was partly attributable to the summer holidays in Turkey and the Hajj travel season.

International sector up for the third straight month. Domestic traffic for Malaysia in August 2018 increased by +0.8%yoy to 4.1m passengers, mainly contributed by the +5.7%yoy growth in KLIA2. For the international sector, passenger traffic in Malaysia showed a positive yearly growth for the third straight month albeit at a tapered level of +1.0%yoy compared to +17.1%yoy in August last year. This was due to the high base effect coming from the SEA Games held at Kuala Lumpur from 19-30 August 2017 in addition to the school holidays. Nonetheless, the momentum of the international sector for Malaysia has remained consistently above 4.2m passengers for the past three months, which we opine will help to expand the traffic percentage of high value passengers moving forward. Accordingly, we expect the seasonal factors such as China Golden Week and school holidays will continue to lend support to MAHB’s earnings for the rest of the year.

Remaining of the year looking good to hit estimates. We believe the strong momentum of traffic flow to continue, which will be led by the international segment. We premised our expectations on the robust air travel demand. Chinese tourists are still expected to be the driver, due to supportive visa policies in Malaysia. We recall that Chinese accounted for 10.0% of Asian tourists in 2017, under which the number of passengers have grown at a 3-year CAGR of +10.8% annually. While we note this positive development, we believe that the positives have already been priced in. Accordingly, we maintain our NEUTRAL call on the stock with an unchanged TP of RM9.88

Source: MIDF Research - 13 Sept 2018

Share this
Labels: AIRPORT

Related Stocks

Chart Stock Name Last Change Volume 
AIRPORT 8.20 +0.05 (0.61%) 1,199,500 

  Be the first to like this.
 


FEATURED EVENT
 

324  458  490  595 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 SAPNRG 0.315-0.01 
 IWCITY 0.63+0.04 
 AAX 0.26-0.03 
 VS 0.985-0.035 
 HSI-C3W 0.485+0.045 
 DAYANG 0.795+0.005 
 SAPNRG-WA 0.1050.00 
 BARAKAH 0.10-0.02 
 HSI-H4Y 0.135-0.03 
 DNEX 0.3250.00 

SPONSORED POSTS

1. Investment Bloggers Day 2019 MQ Trader Announcement!
2. Investment Bloggers Day - Get your sponsored ticket from MQ Trader today! MQ Trader Announcement!

TOP ARTICLES

1. Dayang Will Fly on Monday - Koon Yew Yin , Calvin Tan Comments (Please post comments here & contribute your ideas) THE INVESTMENT APPROACH OF CALVIN TAN
2. Dayang Will Fly on Monday - Koon Yew Yin Koon Yew Yin's Blog
3. PANTECH(5125) OR ALL-TECHNOLOGY STOCK IN THE OIL AND GAS SUPER BOOM TIME, CALVIN TAN RESEARCH THE INVESTMENT APPROACH OF CALVIN TAN
4. This company got 5G network prospect + Mahathir factor, ready to punch all the way into glorious moment again Target Invest - We Target, We Invest
5. Tony Fernandes: This will be best year for Airasia. New platform business will grow ancillary Good Articles to Share
6. [SELL] Carimin - Exposing KYY's Nonsense Real Talk
7. The Bonuses of Airasia Windfall Profit
8. FPI - Earnings dragged by higher operating cost (HLIB maintain BUY rating with TP of RM2.22) FPI 2大因素前景看好台灣聯友今年再 尋突破
Partners & Brokers