Posted by Khaz > 2019-07-03 15:48 | Report Abuse

its just this AA stock have so many blocking warrant

Posted by Khaz > 2019-07-03 15:48 | Report Abuse

cb IB

Posted by kevinobc > 2019-07-03 15:53 | Report Abuse

We reiterate our OVERWEIGHT stance on the sector, premised on AIRASIA’s special dividend of 90.0 sen. While we might have downgraded AIRPORT from OP to MP with an unchanged TP of RM8.70, we believe that there could be more potential re-rating catalysts in Oct-19 upon the release of the third consultation paper on the implementation of RAB from MAVCOM. We opine that the third consultation paper is critical with at least 80-90% of its details finalised as it would pave the way for the implementation of RAB in Jan-20, and we might look to review our valuation methodology on AIRPORT upon the release of the third consultation paper as it could be a major re-rating catalyst for AIRPORT.

Mixed fortunes in 1QCY19. Over 1QCY19, share price for AIRASIA registered negative return of 1.8% while AIRPORT registered positive return of 11.2%. We believe that the weakness in AIRASIA’s share price despite the announcement of special dividend of 90.0 sen is due to the challenging operating environment arising from high fuel cost, and lower yields as a result of AIRASIA’s strategy to grab market share with their expanded capacity. As for AIRPORT, we believe that it is mainly due to MAVCOM’s second consultation paper, which is deemed to be favourable for AIRPORT and their future expansion plans upon the implementation of RAB framework. In 1QCY19, both AIRASIA and AIRPORT reported results that were in-line – a sequential improvement over the misses reported by both in the previous quarter.

Healthy domestic traffic underpins steady growth. AIRPORT continues to register steady passenger traffic (including ISG) growth of 3.7%, YoY-Ytd for 5M19 (+4.1% for Malaysian operation and +2.2% for Turkey operation YoY-Ytd), which we believe is on track to meet our target of 4.3%. The steady growth for its Malaysian operations was mainly backed by domestic traffic, which registered growth of 7.6%, YoY-Ytd.

Industry updates. AIRASIA’s special dividend of 90.0 sen was a positive surprise for us, reflecting management’s asset light approach as they are undertaking their digitalisation journey and expansion of new businesses that leverage on technology, i.e. Teleport, BigPay and AirAsia.com. Nonetheless, we opine that its existing business, i.e. air travel to be cruising through cloudy skies due to higher operating cost environment where higher jet fuel cost currently averages at USD78.7/bbl versus its low of USD66.6/bbl.

As for AIRPORT, the future looks better upon the release of the second consultation paper on RAB framework, whereby MAVCOM is considering to benchmark its Return of Asset based on a WACC of 10.88%, and a preliminary approved CAPEX of RM5.0b under the first review period (RP1) from year 2020-2022, charting AIRPORT’s future growth. While we are positive with MAVCOM in engaging every stakeholder, we believe that the hurdle in AIRPORT’s CAPEX plans could be from a major client having a different preference of airports compared to KLIA2. Hence, we would not be surprised if AIRPORT’s approved CAPEX of RM5.0b were reduced after the review of MAVCOM’s second consultation paper. The third consultation paper that is expected by Oct-19 would be critical as it would set the tone for the future development of airports and its PSC charges framework.

As for the implementation of departure levy of RM40/20 per pax for International/ASEAN departure that is slated to take place in September, we do not think that it would have a significant impact to passenger traffic. However, we believe that it might impede MAVCOM’s effort in setting PSC charges through the implementation of RAB for the aviation industry, especially when the departure levy could be utilised for future airport development in rural areas. Currently, the departure levy was aimed at encouraging tourism but with no indication of the use of funds.

Maintain OVERWEIGHT. We upgraded the sector from NEUTRAL to OVERWEIGHT post the May-19 reporting season due to the special dividend from AIRASIA and also MAVCOM’s second consultation paper, which shed more light on the implementation of RAB framework in Jan-20. While we are maintaining our OUTPERFORM call on AIRASIA with an unchanged Target Price of RM2.20 based on 9x PER on its FY20E EPS (excluding special dividend), we downgrade AIRPORT from OUTPERFORM to MARKET PERFORM with an unchanged Target Price of RM8.70 that is based on 1.72x PBV based on its FY20E BVPS. We believe that the next potential re-rating catalyst for AIRPORT could lie in the third consultation paper that is to be released in Oct-19, which would pave way for the implementation of RAB in Jan-20 which would prompt us to review our Target Price for AIRPORT with an upward bias as we look to review our valuation methodology.

Source: Kenanga Research - 3 Jul 2019

Posted by EngineeringProfit > 2019-07-03 16:00 | Report Abuse

FLYing.....VROOM

Posted by jclass > 2019-07-03 16:09 | Report Abuse

Bought in price is 3.04,should I sell it if the current price reach my bought in price?
Any advise?

Posted by Bullballs > 2019-07-03 16:12 | Report Abuse

Kambing at RM3

Posted by wendyuong > 2019-07-03 16:14 | Report Abuse

Heading rm3

Posted by toto > 2019-07-03 16:15 | Report Abuse

Sell at 3.04??? Gila meh. Easily can reach more than 3.10 lah

Posted by Khaz > 2019-07-03 16:17 | Report Abuse

Worth atleast 3.35 if no IB blocking

Posted by jclass > 2019-07-03 16:23 | Report Abuse

Toto is that mean u suggest to let go at the price higher than my bought in price?

Posted by ryanlcc > 2019-07-03 16:23 | Report Abuse

should be touching RM2.99 today..

Posted by newinvestor17 > 2019-07-03 16:23 | Report Abuse

not bd, inb4 BJ comes out and makes up stories that they bought RM100K worth of AA and going to buy more after the dividends

Posted by JN88 > 2019-07-03 16:24 | Report Abuse

who sell ady??

Posted by newinvestor17 > 2019-07-03 16:26 | Report Abuse

JN88, the question is not about who sold already but who's buying at the top and going to get caught ?

Posted by newinvestor17 > 2019-07-03 16:27 | Report Abuse

In before BJ comes out and says his net cost is RM1.X something and his buying more with his dividends when it comes in

Posted by Jona0724 > 2019-07-03 16:27 | Report Abuse

wah... fight show coming

Posted by zhen wei & JP > 2019-07-03 16:29 | Report Abuse

4.30 . Best hughes. Dreging ree

Posted by MK4872 > 2019-07-03 16:31 | Report Abuse

if u bought at 3.04 and sell at 3.04...you pay commission for what?

Posted by MK4872 > 2019-07-03 16:32 | Report Abuse

you will be losing money jor

Posted by MK4872 > 2019-07-03 16:32 | Report Abuse

some more you forgo the SD....think first la

Posted by MK4872 > 2019-07-03 16:33 | Report Abuse

what is the rush to sell? AA is not closing shop or delisting anytime right?

Posted by Jona0724 > 2019-07-03 16:33 | Report Abuse

got news
https://www.theedgemarkets.com/article/airasia-partners-western-australia-boost-tourism

Posted by LilyLL > 2019-07-03 16:33 | Report Abuse

Today can't break $3 close $2.97 oledi

Posted by Khaz > 2019-07-03 16:38 | Report Abuse

CIMB will not let it pass RM 3 easily

Posted by 618988281 > 2019-07-03 16:43 | Report Abuse

Pop up.. RM 5.5

Posted by wendyuong > 2019-07-03 16:52 | Report Abuse

Will tomorrow break rm 3? Hahahah or stopb

Posted by newinvestor17 > 2019-07-03 16:57 | Report Abuse

CIMB has nothing to do, if buyers become irrational like how most here are, then it wouldn't be surprising for it to break 3.

Posted by Jona0724 > 2019-07-03 17:00 | Report Abuse

buy high not a problem... must be top up when low... i bought last time @4.03 but i was earning money from AA now.

Posted by ryanlcc > 2019-07-03 17:02 | Report Abuse

I bought RM3++ since last year....Yet, im still earning money....
RM0.40 + RM0.12 (DIV) - apa lagi !!

Posted by newinvestor17 > 2019-07-03 17:06 | Report Abuse

Looks like all the Warren Buffet's of i3 and BJ's backup accounts are up and running again to protect their master

Posted by JN88 > 2019-07-03 17:07 | Report Abuse

AirAsia taking Mas la.... PNB and EPF...

Posted by InvestsucessTrader > 2019-07-03 17:11 | Report Abuse

Former co-founder of AA proposed to take over MAS

Posted by Jona0724 > 2019-07-03 17:12 | Report Abuse

beware ppl who didnt buy AA but very free to gossip here. they got other purpose.

Posted by Betkaukau > 2019-07-03 17:34 | Report Abuse

Hope can collect it back at 2.45. No thanks to N17 come out barking and then AA keep going up. zZZZz

Posted by Springtime > 2019-07-03 17:38 | Report Abuse

To takeover MAS, AA has to be RM5 and above

Posted by jclass > 2019-07-03 17:39 | Report Abuse

Ryanlcc so u will keep AA til SD even price up til yr bought in price?

Posted by Springtime > 2019-07-03 17:39 | Report Abuse

PNB and EPF have to keep buying. Tmr break 3

Posted by northeasttrend > 2019-07-03 17:42 | Report Abuse

let's fly with AA tmr

Posted by FinanceHeng > 2019-07-03 17:50 | Report Abuse

up 8% in 2 days, time to rest abit

Posted by Jona0724 > 2019-07-03 17:59 | Report Abuse

Drop a bit also good oh, let ppl who want join can on board

Posted by toto > 2019-07-03 18:11 | Report Abuse

jclass, YES. No above 3.10, don't sell. In between before ex, the price will keep going up & down, just ignore it. Now u just look forward to yr target 3.10. 3.10 is my conservative price, I think AA can go higher than 3.10 before EX. Trust me for once.


jclass Toto is that mean u suggest to let go at the price higher than my bought in price?

Posted by jclass > 2019-07-03 18:29 | Report Abuse

Toto thanks for yr advised but do u think should I keep AA after ex and buy in more ?

Posted by Surewind > 2019-07-03 19:00 | Report Abuse

i plan to do that actually, not not buy now but to buy during ex-date then use the dividend money to average down the cost even further.

Posted by calvincheebursa > 2019-07-03 19:05 | Report Abuse

tomorrow break 3.00 hopefully

Posted by toto > 2019-07-03 19:39 | Report Abuse

Go & refer to the earlier msgs which a few sifus give some very good opinions & comments on shld we sell before/ after ex.

jclass Toto thanks for yr advised but do u think should I keep AA after ex and buy in more ?

Posted by Khaz > 2019-07-03 19:40 | Report Abuse

Citibank epf keep top up...

Posted by Trouble Huat > 2019-07-03 19:45 | Report Abuse

where do you see there is citibank? haha

Posted by Khaz > 2019-07-03 20:05 | Report Abuse

777,000
Acquired Direct Interest
Citigroup Nominees (Tempatan) Sdn Bhd Employees Provident Fund Board

Posted by Jaya > 2019-07-03 20:09 | Report Abuse

People just buy and hold
You won’t regret

Posted by PotentialGhost > 2019-07-03 21:18 | Report Abuse

Citibank ? Hahaha , what a lousy bank even a kid analysis also better than Citibank.