MAHB; Hold; RM6.20
Price Target: RM6.05; MAHB MK

MAHB’s wholly-owned subsidiary Malaysia Airports Consultancy Services Sdn Bhd (MACS) has secured a contract for the provision of airport facility management services from the New Doha International Airport  Steering Committee (NDIA Steering Committee). The project period is three years (valued at RM83.3m) with an option to extend for a further three years (valued at RM90.0m).

This news is positive demonstrating the Group’s ability to export its know-how in airport facilities management. However, the contributions to overall earnings will be relatively small compared to its current earnings base (1% of FY14-15f). Maintain Hold with SOP-based TP of RM6.05. In the near term, we expect share price upside to be capped by valuations. In the longer term, the group’s prospects will be underpinned by greater passenger growth and acceleration in non-aeronautical earnings with the opening of klia2, and value-enhancing development of land surrounding the airport.

Source: HwangDBS Research - 24 Jun 2013