Malaysia  Airports  Consultancy  Services  Middle  East  LLC  (49%-owned  by MAHB  via  MACS)  has  won  a  contract  from  the  New  Doha  International Airport  Steering  Committee  for  the  provision  of  Repair  &  Maintenance Services  of  the  Airport  Special  System  at  Hamad  International  Airport,  in Doha, Qatar, valued at QAR209.5m (c.RM192.2m). The contract is for three years  with  an  option  to  extend  for  additional  two  years.  The  New  Doha International  Airport  was  opened  in  April  2014,  with  the  initial  capacity  to handle 29m passengers per annum (mppa) and eventually up to 50mmpa. (Source: Bursa Malaysia)

Comment: Based on its 49% stake and an estimated margin of 20%, the 3-year  contract  will  contribute  about  RM6m  a  year  to  its  associate contribution. Minimal impact to group’s overall bottomline, however positive for  MAHB’s  branding  and  overseas  exposure.  No  change  to  our  2014e-2016e earnings forecast. Maintain REDUCE and target price of RM6.20.

Source: Affin Hwang Capital Research - 15 Dec 2014