I think Bursa will extend because the aviation industry is improving. Somemore tourism is an important industry to Malaysia with huge economy multiplier.

AAX and Capital A employs a lot of people in Malaysia, u see MOT also friendly to AirAsia one.

AAX will benefit not only from China reopening but from resumption of travel to Istanbul, Australia and many other parts of the world including US!

My target of RM3.36 using 3x PE is intact assuming AAX can maintain their core EPS at least 28 sen registered in 4Q2022.

Another positive news on AirAsia X on its expansion plan. It is now profit driven as compared to market share focused last time. This means higher possibility for higher EPS!

Source: https://www.nst.com.my/business/2023/04/898062/airasia-x-cautiously-executes-growth-plans-ceo-benyamin-ismail

5 takeaways from the news:

1. AirAsia X is executing its growth plans cautiously with calculated moves.

2. The airline will focus on traditional routes and regional destinations before expanding to longer routes like the
United States.

3. AirAsia X will introduce Istanbul as a new destination, targeting middle-income travelers who prefer low-cost carriers.

4. The recent reopening of China presents a huge opportunity for AirAsia X, and the airline has already started flying to Hangzhou, Shanghai, and Beijing with plans to fly to Chengdu in the future.

5. AirAsia X currently has 14 Airbus A330 aircraft, with nine operational and the rest waiting for approval to fly after maintenance.

AirAsia X (AAX) continues to expand its China network with two weekly flights to Beijing restarting last week after almost a three-year pause.

...

Flights will ramp up from twice weekly on Thursday and Saturday to four weekly flights starting 1 June 2023 to meet growing forecast demand, further boosting travel and tourism in the region.

“More expansion in China is on the horizon for AAX as we plan to relaunch more routes and introduce more unique, less travelled destinations in China in the near future,” he concluded.

Source:
https://www.retailnews.asia/airasia-x-expands-china-network/

Keep this AAX as the trend of China reopening is real, I did not see any lockdown news only see more flights going to/from China !

My target of RM3.36 using 3x PE is intact assuming AAX can maintain their core EPS at least 28 sen registered in 4Q2022.

Why is there a need for a capital injection when they already have RM182 million in cash and only RM50 million in immediate liabilities to be paid within a year? Moreover, the company can also generate its own cash flow, so there is no need to issue more shares to obtain additional funds from shareholders.

Travel demand is back not just from China, but Australia too.

AirAsia X resumes first-ever KL route to Gold Coast, Australia after two-year hiatus, news from MalayMail as below.

https://www.malaymail.com/news/malaysia/2023/04/02/airasia-x-resumes-first-ever-kl-route-to-gold-coast-australia-after-two-year-hiatus/62771

My target of RM3.36 using 3x PE is intact assuming AAX can maintain their core EPS at least 28 sen registered in 4Q2022.

Retailers stock up due to confidence that demand is back. Remember they have to pay cash to stock up. So it is a positive sign that demand is really back.

Want to know reasons why APOLLO is worth 67% more than its current price ? Read here...

https://klse.i3investor.com/web/blog/detail/bestStocks/2023-04-04-story-h-274282357-APOLLO_3_Reasons_Why_This_Stock_Will_Surge_up_to_50

APOLLO - Worth RM6.75

One year can easily make EPS 45 sen.
Use its average PE and consumer PE of 15x, this stock is worth RM6.75.

Wah, 65% upside !

Catalyst = Kids back to school, so they buy snack again. It is economy reopening play.

https://www.theedgemarkets.com/node/661232

https://www.theedgemarkets.com/node/661162

UOB Kayhian:

Our top pick for the sector is Hartalega for its above industry operating efficiency and relative upside versus its peers.

• Upgrade to OVERWEIGHT. Recent results have succumbed to margin pressure,
registering unprecedented corporate losses across the sector. However, we expect
earnings to bottom out in 1H23 (even dipping below expectations) but ASPs are due to
finally see a positive and meaningful adjustment across competing regional producers as
well. In addition, with costs expected to moderate in 2H23, we expect losses to narrow.
Meanwhile, valuations are trading close to +1SD to merely recovering 2024 earnings,
suggesting deep value when 2025 earnings are taken into perspective. As a result, we opt
to roll over our valuations to a profitable 2024 for Kossan and Hartalega (have done so for
Top Glove) and peg earnings to five-year mean valuations. We also take the opportunity
to upgrade both to BUY.

TP of RM3.36 remains intact based on 3x PE for 2023.

Sharing article that I read over the weekend.

https://www.freemalaysiatoday.com/category/highlight/2023/03/17/no-more-turbulence-for-tony-fernandes-capital-a-airasia-x/

The 4Q2022 earnings per share of 37 sen has not reflected any of China reopening effect.

The reopening started on 8-Jan-2023. So 1Q2023 (1st Jan to 31 March) will be the first time we can see the impact of China reopening on AAX earnings.

Logically, this should boost its EPS from new contribution.

Target RM3.36 is intact. 3x PE already can get 3.36.

Still believe it will go to RM3.36 using 3x PE on RM1.12 EPS for 2023. China reopening trend is intact.

"The big money is not in the buying and the selling, but in the waiting." Quoting Charlie Munger :)

RM3.36 for AAX looks seriously realistic if China reopening continues. AAX at 3x PE means should reach RM3.36.

China reopening is a global trend for the whole 2023. Stock market looks at the future earnings for the net 6 months. The PN17 is history, everyone knows it so already priced in.

Based on the data in this article quoting data from Cirium, number of flights to China will increase 259% from January to May.

https://www.flightglobal.com/networks/airlines-bide-their-time-on-capacity-after-rapid-china-reopening/152443.article

On the way to RM3.36 ! AAX at 3x PE means should reach RM3.36, China reopening impact is definitely will bring more tourists to Malaysia. Article from Nanyang as below on China reopening impact to tourism industry in Malaysia.

https://www.klsescreener.com/v2/news/view/1124495

As I said, AAX is worth RM3.36 if you believe China tourist / Malaysia people will travel to China or other places like Australia/Hong Kong...

Few days ago, AAX restarted its flight to Shanghai again. News as below,

https://www.thestar.com.my/business/business-news/2023/03/03/airasia-x-resumes-services-to-shanghai

Back to basic lah, u see their 4Q Earnings Per Share already 37 sen. Minus one off stuff still has core EPS at 28 sen. If this performance can maintain for next few quarters, we are talking about 2023 EPS of RM1.12

How can a stock trade at less than its EPS ?

So, if you believe China tourist / Malaysia people will travel to China or other places like Australia/Hong Kong...

Use 3x PE, AirAsia X already worth RM3.36

Check the result here:

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3329615

Remember in Quarter 2, KIENHIN net profit surged 122% year-on-year to RM10.0 million.
It is also up 74% quarter-on-quarter

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3315044

This stock announced dividend every year for the past 10 years except 2021 due to Covid which hit almost all business.

Heard that restaurant business is super good during Chinese New Year ! What company will benefit from this trend ? Of course AJINOMOTO !

The most obvious trend that people really eat out is vegetable price surge more than 50% recently partially due to surge in demand during Chinese New Year. Huat Ah Ajinomoto!

Watch out for good news in 3 to 4 weeks time when the result is out. Earnings already improved quarter on quarter for April-June period and July-September period. As more people eat out, restaurant will use more Ajinomoto.

Ajinomoto is a beneficiary of economy reopening post MCO. Now almost all work from office no more WFH so this is good for Ajinomoto products consumption. 4Q2022 earnings should be good hehehe to be announced in February.