Traffic growth within expectation. MAHB's February 2012 passenger traffic growth of 2.3% YoY, which brought YTD growth to 6.7%, is within the guidance of 6%-7% growth in 2012. This February slowdown is expected as CNY is in January this year versus February back in 2011. Secondly, MAS has cut its system capacity by 10% in February as part of its business turnaround plan. We retain our forecast for 6.7% passenger traffic growth in 2012 as it has already taken into account these factors. Maintain BUY with an unchanged MYR7.10/share DCF-based target price.

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Source: Maybank Research - 19 April 2012