Stock Name: AIRPORT
Company Name: MALAYSIA AIRPORT HOLDINGS BHD
Research House: HWANGDBS

KUALA LUMPUR: Hwang DBS Vickers Research said Malaysian Airport Holdings Bhd (MAHB) 3Q10 core net profit of RM82.9 million (down 1% q-o-q) was above its expectation but in line with consensus.

It said on Monday, Nov 1 that MAHB's lower staff cost and strong passenger volume supported earnings.

'MAHB said 4Q10 should be seasonally stronger on higher passenger traffic. Hence, we look to raise FY10F earnings by c.5-10%. Maintain Buy, our SOP-derived TP of RM6.15 is under review with upward bias,' it said.

Hwang DBS Vickers Research said it continues to like MAHB for its long-term earnings potential from its cash-rich airport concession, land development, as well as the new LCCT.

'There could be more upside from its overseas investments, which we have yet to factor in our valuations,' it said.