Posted by GoodCompanies > 2017-07-19 10:05 | Report Abuse

My comment:
The Affin analysis is very flawed in my opinion.

Cost increase, for example, is a lot due to other factors, such as selling off planes..then lease them back. The cost is transferred from the bal sheet to the income statements. The net effect that you will see is that net gearing would come down, and this is exactly what happened. I wonder why Affin Hwang did not mention this?

Declining ringgit? Ringgit was already low since 2015 and 2016, in fact ringgit has appreciated and was best performing this year. Therefore this factor is a mute factor, or perhaps it is an opposite factor, one which can make more money for AAX.

Higher jet fuel prices? This is a very mute factor as most of AAX fuel is hedged. And oil price is not going anywhere anytime soon. So this is clearly a mute factor.

Stiffer competition? This has always been there. Didn't they and everyone else always mentioned stiffer competition?

Overall, my assessment is that AAX will be fairly valued at more than 50 cents. And i think the quarter result will keep on improving. Even if AAX do not make more profits, most important is it is still making profits. I am ok for the company to continue with expansion, and invest money there. So my most important metric is none other than, "Number of passengers flown".

Posted by Ammar Roshidy > 2017-08-14 10:10 | Report Abuse

Well well well, Affin Hwang Capital Research downgraded AirAsia X to Sell with a target price of 27 sen! What is the reason for it to go so low? No facts.... to back it up.