then the pretty ah moi stewardess will request for more increment and commission. Even though can attract more load, but operating coats also increase. How mas can earn like that!!!
The problem is MAs doesnt have enough cash flow to run the company so they force the ppl to buy theirs right issue if you are holding theirs shares. In this situation, the debt will grow bigger and bigger because of the debt interest, poor managements, poor business decision and so on. Sell call
ye lor. still ok 1. just that this morning heard so much 'noises'. afternoon session, we see how larr. now, let's go to sogo to wink2 to the sales girls ;)
Results Below Expectations – 1Q13 core net loss at RM340.4m vs. HLIB’s FY13 estimates of RM572.8m loss and consensus’s RM14.9m loss.
Deviations Worse than expected yield pressures.
Dividends None
Highlights 1Q13 revenue increased only by 10.8% despite passenger demand increased by 16.5% yoy (load factor improved to 76.6%) and cargo demand increased by 9.7% yoy (load factor improved to 68.9%). Effective passenger yields dropped 5.2% yoy (see figure #3) and cargo yields dropped by 6.8% yoy.
Operational cost increased 6.5% yoy in tandem with higher capacity (driven by higher frequency and airport charges) and increase in average jet fuel cost from US$130/bbl to US$135/bbl.
MAS received the last RM91m Late Delivery Payment related to A380s in 1Q13.
Management has hedged 15% of jet fuel requirement for the year at jet fuel of US$115/bbl.
MAS is actively pursuing high load factor at the expense of lower yields. MAS targeting international load factor to achieve 83-85%, while domestic at 75-78%. In fact, its A380s are operating at high load factor of >80%.
However, average yields in Asia region had dropped significantly, on continued intense competition among airlines, affecting MAS international yields. Locally, MAS is competing head on with AirAsia and Malindo.
We expect continue yield depression for the remaining years, affecting MAS profitability, despite management’s ongoing effort to turnaround the airlines.
Risks World crisis (i.e. war, tourism and epidemic outbreak), prolong surge in jet fuel price and the development of high speed train between Singapore and Pulau Pinang.
Forecasts We increased FY13-14 losses to RM756m and RM417m from RM573m and RM381m respectively (to reflect lower yield assumption), and only expect breakeven in FY15.
Rating Sell
Valuation Maintain sell with lower Target Price of RM0.28 (from RM0.30) based on lower 6.8x adjusted FY14 EV/EBITDAR.
Inikalilah...... price drop gao lat gaolat, then govn will take out KWSP to support..... then we go in when low, earn it to cover our EPF...T.T, dare not to think about my EPF lo....may be inside empty eh......sad
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Hustle
3,615 posts
Posted by Hustle > 2013-05-30 09:38 | Report Abuse
Special service possibly need Huang Nen Nen approval 1st :)