Management comes clean. MAHB, at an analyst briefing yesterday, revealed the latest development of KLIA2. In a nutshell, the project size is much bigger than originally planned with a capacity of 45m (versus 30m, +50% increase), completion date has been pushed to Apr 2013 (previous Oct 2012) and the project cost has soared to RM3.6-3.9b (versus RM2.0-2.5b, +56%-80% increase). Management asserts new IRR of >10% (our original estimate 13.2%). We are assessing the impact to our earnings model and place MAHB under review.

Maybank research (30 November 2011)

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