(MAHB MK/SELL/RM8.75/Target: RM7.30)

Earnings were broadly in line with expectations, with 1H17 EBITDA amounting to 52% of our full-year estimate. Malaysia operations demonstrated operating leverage with an 18% yoy rise in EBITDA despite higher staff costs. However, Turkish operations remained a drag due to weak throughput, higher D&A and financing costs. Meanwhile, valuations remain expensive at 62x 2017F PE and 82x PE after adjusting for interest on PERPs. Maintain SELL. Target price: RM7.30.

Source: UOB Kay Hian Research - 1 Aug 2017