Folks, let me summarize for your easy reference 2Q13

Revenue:
(2Q13) Rm 1.246b
(1Q13) Rm 1.300b

Operating expenses:
(2Q13) -Rm1.002b
(1Q13) -Rm1.045b

Finance Income:
(2Q13) Rm14.306m
(1Q13) Rm19.771m

Finance Costs:
(2Q13) -Rm109.412m
(1Q13) -Rm106.294m

Foreign Exchange gains/(losses) on borrowings:
(2Q13) -Rm122.718m
(1Q13) -Rm37.688m

Forex gain/(loss) on amt due from associate:
(2Q13) Rm8.228m
(1Q13) Rm4.889m

Current Taxation:
(2Q13) -Rm6.262m

Deferred taxation:
(2Q13) -Rm47.999

Share of results of jointly controlled entities:
(2Q13) Nil
(1Q13) -Rm2.346m

Share of results of associates:
(2Q13) Nil
(1Q13) -Rm1.420m


Profit after tax 2Q13 b4 AA Japan sale gain: -RM19.917m
####################################


Gain on disposal of interest in AA Japan 2Q13: Rm78.265

Profit after tax :
(2Q13) Rm58.348m
(1Q13) Rm104.793m

Cash and cash equivalents:
(2Q13) Rm1.639b
(1Q13) Rm2.156b

Trade & Other Payables:
(2Q13) Rm1.233b

Total Debt:
(2Q13) Rm8.813b
(1Q13) Rm8.464b

Net Gearing:
(2Q13) 1.56 – after cash deduction on debt
(1Q13) 1.39 – after cash deduction on debt

1. Yes folks, a LOSS of Rm19.917m if without AA Japan sale gains.

2. Forward loads in Malaysia for the remaining months of the 3Q13 are lower than in the prior year with base fares slightly lower than the prior year.

3. A recipe for disaster: high jet fuel price plus weak ringgit!

4. The ringgit against the US dollar on 22/6/13: Rm3.3150/3180

5. Jet fuel price for Asia & Oceania trading on 22/6/13: USD125.10

6. No dividend recommended for the quarter ended 30 June 2013

7. 51.92% of AA were held by foreigners and they want to see profit translate into dividend & premium

Happy Investing, folks!

Folks, to those still in denial state!

Optimism is denial, so face the facts and move on. It is wise to direct your anger towards problems not people, to focus your energies on answers not excuses.

Buy, hold or sell its your choice. So be it!

Next week Price Performance

AA Price Performamce:

1 month:
*(23/8/13) Rm2.64 - Low
(25/7/13) Rm3.32 - High

6 months:
(26/02/13) Rm2.61 - Low
(05/06/13) Rm3.54 - High

One Year:
(21/12/12) Rm2.49 - Low
(29/08/12) Rm3.64 - High

All the best, folks!

*new low

Remember this price performance, folks!

AA Price Performamce:

1 month:
(22/8/13) Rm2.69 - Low
(25/7/13) Rm3.32 - High

6 months:
(26/02/13) Rm2.61 - Low
(05/06/13) Rm3.54 - High

One Year:
(21/12/12) Rm2.49 - Low
(29/08/12) Rm3.64 - High

AA going to test and make new low or high?

Should ask Warren.B & Peter.L to invest in AA instead if AA is a triple A stock? Wonder why are they not buying?

Heheheheheheh!!

Emerging Asian countries' weak current account balances will continue to weigh on their currencies as fears of the Federal Reserve unwinding its monetary stimulus highlights liquidity concerns in these markets.

The market sell-off has its roots in deteriorating underlying fundamental flows, and in particular the weakening broad balance of payments led by current account deterioration in recent quarters, Goldman said

Remember folks, we are not as wealthy as Warren Buffet or Peter Leech. Share a just a tiny portion of their hugh investment portfolios! Worst still only saying about their good experiences. What about the bad experiences?

Folks, Goldman expects the ringgit to weaken to 3.4 per dollar in the next three months, implying a fall of about 3 percent from current levels and compared with a previous forecast of 3.2.

Its new 12-month forecast for the Thai baht is 32 per dollar, a 4 percent downward revision from the previous forecast.

The ringgit fell to 3.31 per dollar on Thursday, its weakest level in more than three years. The Thai baht, trading at about 31.89 to the dollar, is down about 4 percent so far this year.

The rupiah should take the biggest hit as investors flee the volatile group of currencies for the safety of developed markets, according to Goldman.

It expects the rupiah to weaken to 11,800 per dollar in the next year, compared with a previous target of 10,500. That implies a fall of 9 percent from current levels of 10,830.

The rupiah hit its lowest level in more than four years on Friday, racking up losses of 12 percent in the year-to-date.

Indonesia's central bank has responded by lifting interest rates by 75 basis points this year to 6.5 percent, becoming the first Asian central bank to do so since June 2011.

But the monetary tightening appears to have done little to stem the rupiah's fall.

Goldman expects Bank Indonesia to hike interest rates in September in an attempt to prevent further declines in the currency, but says that may not be enough.

So will Malaysia be next? Only time will tell!

Folks, Goldman Sachs says it expects the rout in Asian emerging market currencies to continue, downgrading its forecasts for battered currencies in the region.

Goldman revised down its three, six and 12-month targets for the Malaysian ringgit, Thai Baht and Indonesian rupiah on Friday (23/8/13).

The currencies, together with their emerging-market peers, have taken a beating recently amid expectations for an unwinding of U.S. monetary stimulus.

Forward loads in Malaysia for the remaining months of the 3Q13 are lower than in the prior year with base fares slightly lower than the prior year.

Oversupply due to low demand which has caused cancellation thus affecting the revenue?

Remember folks, interest rate is steady but jet fuel price is high while the ringgit is weak. So folks, what your opinion on the next Q?

Nobody here will curse you if yours are against me or them. Spit it out. Tq

D7 0171 22/08/2013 10:30 PM JEDDAH-KUALA LUMPUR CANCELLED
D7 0393 22/08/2013 08:00 PM WUHAN-KUALA LUMPUR CANCELLED
D7 0303 22/08/2013 07:15 PM HANGZHOU-KUALA LUMPUR CANCELLED
QZ 8162 22/08/2013 04:15 PM JAKARTA-KUALA LUMPUR CANCELLED
AK 1826 22/08/2013 07:00 AM SINGAPORE-KUALA LUMPUR CANCELLED
AK 5221 22/08/2013 01:00 AM KUCHING-KUALA LUMPUR CANCELLED
AK 1455 22/08/2013 12:00 AM HO CHI MINH-KUALA LUMPUR CANCELLED

AK 1825 22/08/2013 10:40 PM KUALA LUMPUR-SINGAPORE CANCELLED
AK 1454 22/08/2013 07:40 PM KUALA LUMPUR-HO CHI MINH CANCELLED
AK 1440 22/08/2013 06:30 PM KUALA LUMPUR-HANOI CANCELLED
AK 5228 22/08/2013 04:30 PM KUALA LUMPUR-KUCHING CANCELLEDV

View here: http://flight.klia.com.my/fids.aspx

2Q13 revenue down because of flight cancellation daily? Increase in frequency & capacity causing lower yield & cancellation: a high supply low demamnd factor? Hmmmmmm...! Anyone?

Revenue Breakdown:

1. Passenger seat sales:
(2Q13) Rm726.4m
(1Q13) Rm795.4m

2. Baggage fees:
(2Q13) Rm109.2m
(1Q13) Rm109.1m

3. Aircraft operating lease income:
(2Q13) Rm155.5m
(1Q13) Rm149.5m

4. Surcharges and fees:
(2Q13) Rm149.3m
(1Q13) Rm138.7m

5. Other revenue:
(2Q13) Rm105.9m
(1Q13) Rm108.1m

Total revenue: (2Q13) Rm1,246.3m / (1Q13) Rm1,300.8m

Revenue lower Q to Q! Folks, why lower? How about the 3Q13? Up or down?

Airlines stock formula for disaster: weak ringgit, high jet fuel price & high financing rate!

Currently with only the weak ringgit & high jet fuel price, airlines are desperately competing for oxygen to breath!

Careful now, folks!

Revenue:
(2Q13) Rm 1.246b
(1Q13) Rm 1.300b

Revenue down, folks!

AA Price Performamce:

1 month:
(22/8/13) Rm2.69 - Low
(25/7/13) Rm3.32 - High

6 months:
(26/02/13) Rm2.61 - Low
(05/06/13) Rm3.54 - High

One Year:
(21/12/12) Rm2.49 - Low
(29/08/12) Rm3.64 - High

Folks, judge for yourself AA prices going to test the low or high? Hmmmmmmmmmmmmm......!!

AA after years of only having to compete against a weak flag carrier, which partly explain AA’s consistently high operating profit margin of 20% and above, the local Malaysian market has seen a major shift in recent months.

AA’s Malaysian short-haul operation, however, saw an alarming drop in average fares of 10% to Rm177.

Unit passenger revenues also decreased by 8% while revenue per ASK were down 6% to Rm5.75 cents.

Mas emerges as fiercer competitor on price.

The international push by MAS has likely impacted AA and its long-haul sister carrier AA X as the capacity increases have come primarily within the Asia-Pacific region, where the two AA carriers operate.

AA has reported increases in operating profits for its three main short-haul subsidiaries in Malaysia, Thailand and Indonesia.

But the Malaysian and Thai carriers saw yields decline while Indonesia AA saw its operating margin drop.

The group continues to find the going tough in the Philippines, where its affiliate incurred another large loss in 2Q2013, and sister long-haul carrier AA X was also in the red.

Following the setback in Japan, where AA has dissolved its affiliate, and with the challenges confronting the group in India, where it plans to launch its newest affiliate in 4Q2013, the group needs the older carriers in its portfolio to perform well.

But while AA, AA X, IAA and TAA continue to outperform most of its rivals, competition is intensifying across all of its markets.

Malindo has launched in Malaysia, Indonesia AA is battling three other LCCs and Thailand could see two new low-cost competitors emerge in 2014.

In the face of competition with the launching of Malindo Air in 2Q13, RASK yields suffered a drop of 6.2 per cent y-o-y while improving the load factor by 2.1 points to 80 per cent .

AA is also feeling the heat of intensifying competition. Yields to drop 2 per cent in FY13 and stay flat in FY14.

AA second quarter 2013 (2Q13) core profit dropped to RM109 million, bringing 1H13 earnings to RM262 million due to the higher-than-expected deterioration in revenue per available seat kilometer (RASK) by 6.2 per cent year on year (y-o-y).

Another factor for the drop was the poor earnings from its associates as a result of losses from Philippines AA, BIG as well as its Expedia Joint Venture.

The surge in the flag carrier’s domestic traffic suggests the Malaysian market was ripe for stimulation.

While AA stimulated the market for several years following its 2001 launch, it had become a relatively comfortable duopoly.

AA in recent years has pursued more rapid expansion in Indonesia and Thailand while MAS restructured, leading to a drop in capacity levels.

Malindo’s entry has benefited consumers and the overall market as both MAS and AA re-accelerated capacity expansion, compounding the impact made by the new entrant.

Well folks, the sudden surge in growth, however, has inevitably come at the expense of yield.

Malindo drives a huge traffic increase at Subang Airport.

Malindo looks at establishing new base at Kota Kinabalu.

Malindo's domestic market share should reach 8%.

MAS has seen its domestic traffic grow at an even faster clip as it has been able to improve its domestic load factor despite the intensifying competition.

Now folks how will AA counter this? More frequency & lower deep pocket price?

Well folks, only time will tell!

KLIA’s domestic traffic was up a more modest 7.3% to 10.6 million passengers in 1Q2013. This increase partly reflects capacity added by AA and MAS in anticipation of Malindo’s launch.

Malindo’s initial domestic strategy was to serve east Malaysian destinations from KLIA and peninsular Malaysia destinations from Subang. But the carrier has adjusted this strategy and decided to serve Langkawi and Penang from both Kuala Lumpur airports.

Kuala Lumpur-Penang is slated to launch on 11-Sep-2013 with 11 weekly flights while Kuala Lumpur-Langkawi will launch the same day with seven weekly flights.

Penang and Langkawi are the third and fourth largest domestic destinations from KLIA after Kuching and Kota Kinabalu.

Given the size of the Penang and Langkawi markets, it is logical for Malindo to match MAS in offering services to these destinations from both Kuala Lumpur airports.

Folks, for 2Q2013, the first quarter of Malindo’s operation, reported a 23.5% increase in domestic traffic to 3.6 million passengers.

This includes a 26.2% increase in domestic traffic in Jun-2013.

Malindo had seven scheduled daily flights at KLIA throughout Apr-2013 and May-2013 while in Jun-2013 it had between seven and 10 flights only!

MAS has been expanding even faster than Malindo and been able to improve domestic load factors, albeit at the expense of yields.

The flag carrier accounts for about 40% of the approximately 350,000 monthly passengers that have been added to Malaysia’s domestic market while AA and Malindo each account for about 30%.

The 20% to 25% domestic traffic increases that have been seen in Malaysia in recent months, making it one of the world’s fastest growing domestic markets, are likely to continue for the remainder of 2013.

But much more modest increases are expected over the medium to long term as Malindo and its two local competitors start to focus more on international expansion.

Investors have short memories!

Folks, Malaysia’s domestic market has seen a 20% surge in passenger traffic since the launch of Malindo Air.

Malindo Air began operations at the end of Mar-2013 and now operates 25 domestic flights across 11 routes, giving it about a 7% share of capacity in the Malaysian domestic market.

In Thailand, demand for tourism and travel is seasonally weaker in the third quarter of the year.

However, TAA continues to benefit from increasing visitor numbers arriving from China, and expects to achieve third quarter loads in excess of the prior year

TAA forward loads in Thailand are consistent with the prior year while average fares are higher than the prior year.

Folks TAA is still the best performer but how long TAA sustain this with volatility in fuel prices & weak bath?

Well, only time will tell!

In a bull market everyone become an instant genius. But in the bear market everyone still in denial!

Why folks?

Federal Reserve officials agreed with their leader Ben Bernanke’s view that the economy will pick up later this year and allow the central bank to taper its asset purchase plan before the end of the year, according to minutes released Wednesday.

But they shied away from signalling when a move might come. So how?

Asian markets were under the cosh on Thursday as a spike in U.S. bond yields drove up borrowing costs globally, and even surprisingly strong data from China couldn't completely staunch the bleeding.

Emerging markets again bore the brunt of the selling as many have come to rely on cheap dollars to underpin domestic demand and fund current account deficits. The currencies of Indonesia, Malaysia and Thailand all hit multi-year lows, while the Indian rupee ploughed another historic trough.

The story about capital outflows could persist for a while. India, Indonesia, Malaysia and Thailand as the most vulnerable.

Again folks a reminder: Buy using you head & not emotions. Never fall in love with a stock which you know will not be your loyal lover!

Recommended Touch & Go! Heheheheheheheh!!

Fear of foreign institutional investors pulling out of the equities segment is also beginning to play on everyone’s minds.

Folks the breakdown of KLSE participation on 21/8/13:

Foreign: 24.57%
Local Institution: 53.77%
Local Retail: 21.66%

Folks for those still in denial of reality after the 2Q13, nothing much we could do but see them bleeding profusely cos buying & still holding sturbbornly at a high price rather than selling it.

Folks, the timing of the Federal Reserve's plan to reduce its stimulus programme remained unclear on Wednesday after minutes of their last meeting showed divisions over the strength of economic growth.

Careful now!

Emerging markets strategist Peter Redward correctly predicted a sharp slide in the Indian rupee and Indonesia rupiah and warned the selling isn't yet over for country's struggling to narrow current account deficits.

Who is next?

As the battered rupee slumped to yet another lifetime low of 64.54 to the dollar on Wednesday, analysts say the selling is getting out of hand and the currency could fall to 70 in the coming months.

Foreign investors have yanked money out of India in recent months amid fears over the winding down of U.S. monetary stimulus and deteriorating economic conditions in the country.

Next, Malaysia? Hmmmmmmmmmmmmmmm.......

Well folks, some are left hearth broken because of falling in love with a stock which if known not to be a faithful & loyal lover!

Wakakakakakakakakak!!

Folks, some are still in state of denial?

Well nothing we could do for them but see them bleeding profusely, buying & holding at a high price.

Wakakakakakakakakak!!

AA X financial ending 30/6/13

*Other payables and accruals: rm135.128m

*include operational expenses payable to airport authorities and passenger service charges.

AA 2Q13

**Trade & Other Payables: Rm1.233b

**owing to whom? Care to share, folks?

Folks, still hoping to go above rm3? Well hope is the only thing left now. But sadly hope is the denial of reality after the 2Q13 announcement.

Hopeless hope.......Heheheheheheheheheh!!

Investors are a lot like fishermen. Find a fisherman and they’ll talk all day about the one time they hooked that 1000lb marlin.

But you never seem to hear stories about all the tiny trout they catch, and certainly not about the days they came home with no fish at all!

Folks, in a bull market everyone become an instant genius. But in the bear market everyone still in denial! Hahahahahahah!!

Only when the tide goes out do you discover who's been swimming naked. Who could it be? Heheheheheheheh!!

22/08/2013 TP rm3.94 RHB
22/08/2013 TP rm3.78 MIDF
22/08/2013 TP rm2.95 MAYBANK
22/08/2013 TP rm3.51 KENANGA
22/08/2013 TP rm2.90 HWANGDBS
22/08/2013 TP rm3.08 HLG
22/08/2013 TP rm3.45 CIMB
22/08/2013 TP rm2.80 AMMB
16/08/2013 TP rm3.94 RHB
21/06/2013 TP rm3.94 RHB
23/05/2013 TP rm3.94 RHB

Hahahahahaha.... so how now? Remember folks use your brain & not follow your emotions!!

Forward Foreign Exchange Contracts
As at 30 June 2013, AirAsia Berhad has hedged approximately 59% of its dollar liabilities of its aircraft and engine loans into Malaysian Ringgit by using long dated foreign exchange forward contracts.

Folks, the latest weighted average of USD/MYR forward exchange rate is 3.2243.

I see money keep on coming! Ting...Ting...Ting...Ting...Ting...Ting! Look like making more money during the down swing rather than the up swing!

So how, my fault hah? Hahahahahahahahah!!

AK 5229 21/08/2013 08:25 PM KUCHING-KUALA LUMPUR CANCELLED
QZ 8206 21/08/2013 07:35 PM JAKARTA-KUALA LUMPUR CANCELLED
AK 1455 21/08/2013 12:00 AM HO CHI MINH-KUALA LUMPUR CANCELLED

AK 5220 21/08/2013 09:00 PM KUALA LUMPUR-KUCHING CANCELLED
QZ 8207 21/08/2013 08:20 PM KUALA LUMPUR-JAKARTA CANCELLED
AK 5228 21/08/2013 04:30 PM KUALA LUMPUR-KUCHING CANCELLED

Improvement as less flight cancellation on 21/08/13 but sadly its a little bit too late to save AA as 2Q13 profit stumble!

To these people: The Truth Hurts!

Hahahahahaha..... Im getting more "report abuse" flag! Must be from those buying high & now bleeding profusely, falling in love & now heart broken and still in denial mode!

Wakakakakakakakakak!!

If you think AA price is cheap now, just wait & see!

Remember folks, the Directors did not recommend any dividend for the quarter ended 30 June 2013.

Careful now as 51.92% of the issued and paid-up share capital of AA of 2,780,534,580 ordinary shares of RM0.10 each were held by foreigners.

Folks, the average fare for 2Q13 was down at RM159 as compared to RM180 achieved in 1Q13.

In Malaysia, forward loads for the remaining months of the 3Q13 are lower than in the prior year with base fares slightly lower than the prior year.

EPF, time to wake up from the slumber! A receipe for disaster: high jet fuel price plus weak ringgit! Hahahahahahah as time will tell!!

Well folks, some are still in denial mode! Heheheheheh!!