Special dividend of 40 sen, totalling RM1.3bn payout, was below MQ Research’s 75 sen expectation. Nonetheless, management has not confirmed balance utilisation of proceeds; total gross proceed is RM4.6bn. MQ Research sees potential dividend upside, likely to be announced in 4Q18 results, given management confirmed that net addition of 24 aircraft in FY19 will be on operating lease, thus minimal capex funding needs. Note that for the first time ever, AirAsia becomes a net cash airline post this aircraft leasing monetisation. Cash on balance sheet stands at RM4.4bn, 44% of market cap.
aiyo...CIMB try to lower down the price not good ah?they demand for another special dividend for 30sen...who know later air asia announce another 30sen...hehe
AirAsia reported its net profit jump by 81% YoY to RM915.9m in 3QFY18. Excluding forex gain of 45.9m, FV gain on derivatives of RM23.0m and net gain disposal of Expedia of RM170.9m and deferred tax income of RM515.4m, its core net profit for the quarter declined 68% YoY to RM160.7m. This was mainly due to increase in fuel expenses. For 9MFY18, AirAsia core net profit of RM837.1m came in below our and consensus full year expectations, accounting for 66% and 63% respectively. The discrepancy from our forecast was mainly due to higher-than expected fuel expenses in 3Q. Nevertheless, we expect earnings to improve on higher fare revision in 4Q, hence maintain our forecast for now. We maintain our Outperform call on AirAsia with unchanged target price of RM4.14 pegged on 13x FY19F EPS. The Group also declared a special dividend of 40 sen per share, to be paid on 28 December 2018.
3QFY18 revenue grew 6.6% YoY to RM2.6bn as a result of 9.1% increase in passengers carried to 10.8m. Unit passenger fare was flat YoY however (+0.5%) to RM222. Revenue per average seat km (RASK) declined marginally by 0.4% YoY in 3Q18. Management expects to achieve FY18 passengers’ load of 85%, with upward fare revision in accordance to higher fuel and competition in 4Q18. 3QFY18 core net profit declined 68% YoY to RM160.7m, compared to RM497.3m in 3QFY17. This was largely due to higher fuel expenses (+52% YoY) as well as weaker ASEAN currencies YoY against USD. Despite the increase in fuel costs, its Malaysian operation reported net operating profit of RM240.4m (-52% YoY). However, its Philippines operations reported net operating losses on higher fuel, closure of Boracay Island and weakening Peso against USD which led to higher maintenance and lease expenses. Its Indonesian unit was also hit by Mount Agung’s prolong volcanic activities, earthquake in Lombok, tsunami in Palu as well as weakening Rupiah against USD. Cost per average seat km (CASK) in 3QFY18 increased by 11.7% YoY to 14.30 sen. Average fuel cost increased to USD95/bbl compared to USD63/bbl in 3QFY17 (Table 1-3). We understand, the Group has hedge about 48% and 27% of Brent oil price of USD67.24/bbl and USD65.4/bbl for 1Q19 and 2Q19 respectively. Dividend. Management has declared a special dividend of 40 sen per share from part of the proceeds of divestment in AAC to BBAM, to be paid on 28 December 2018. As at November 2018, it has transferred 79 aircraft and 14 engines, with remaining 5 aircraft is expected to be transferred by December 2018. Source: PublicInvest Research - 30 Nov 2018
I boycott CIMB by the way !! Hold Air Asia long term !! Down lagi collect !! In the mean time search for good company in !! GenM maybe ?? Still looking will it drop abit more next year ??
GENM will find a new partner more suitable to their working culture, theme park will be revived. Now they need to line the prospects up,not go look for partners.
AirAsia Group, which has a joint venture in India with the Tata Group, is expanding operations in the South Asian country and the unit will start international flights next year, Bo Lingam, deputy group chief executive officer, says in an interview.
* Local media reports that Tata has started initial talks to end the partnership are “absolutely a rumor,” Lingam tells Bloomberg Television’s Rishaad Salamat and David Ingles on Friday,
TF consider best CEO in the current market, already show he willing to protect shareholders. Still want apa lagi. I buy from 3.5 until 2.3 then continue buy from 2.3 unitl 3.1. this time dividend already more than enough to cover everything still got so much capital gain. One SD revived my portfolio for 2018. That's it for my 2018.
If we see the record lah EPF masuk Public Bank masuk Hong Leong do buiness with AIr Asia most likely masuk also RHB do buiness with Air Asia most likely masuk also
CIMB only 1 to downgrade AA Boycott CIMB sell down to 0.01
“We think AAGB may be spreading out the special DPS payments in order to encourage investors to remain in the stock.
“We expect AAGB to declare another special DPS of 30 sen at the release of the 4Q18F results in Feb 2019, bringing the total special DPS to 70 sen, which is reduced from our earlier expectation of 91 sen as we think AAGB may need to conserve cash in a tough operating environment.
“Beyond this, AAGB is looking to dispose of the remaining 35 aircraft in MAA’s balance sheet sometime during FY19-20F, with the proceeds to be also declared as special dividends.
“Once completed, MAA will be an asset-light airline with its entire fleet on operating leases. We have not included any of the latter extra special dividends into our target price until we have more clarity on if and when it will take place,” it said.
Jet fuel prices have remained stubbornly above US$80/bbl despite the recent collapse in Brent crude prices, lifting the crack spread to almost US$23/bbl. ..wrong info
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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....
Beza
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Posted by Beza > 2018-11-30 10:27 | Report Abuse
Special dividend of 40 sen, totalling RM1.3bn payout, was below MQ Research’s 75 sen expectation. Nonetheless, management has not confirmed balance utilisation of proceeds; total gross proceed is RM4.6bn. MQ Research sees potential dividend upside, likely to be announced in 4Q18 results, given management confirmed that net addition of 24 aircraft in FY19 will be on operating lease, thus minimal capex funding needs. Note that for the first time ever, AirAsia becomes a net cash airline post this aircraft leasing monetisation. Cash on balance sheet stands at RM4.4bn, 44% of market cap.