Below expectations. MAHB's MYR203.7m 1H12 core net profit (-1.7% YoY) was 38% of our and 45% of consensus full-year forecasts. While 2H is typically much stronger than 1H, the results disappointed due to operational costs spiking 36.8% YoY, significantly outpacing revenue growth of 21.9% YoY. Some of these cost items are adjustments to prior periods and will not feature in 2H. We maintain our BUY call with a lower DCF-based target price of MYR6.90/share (from MYR7.10), after imputing the higher recurring cost items.

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Source: Maybank Research - 30 July 2012