Malaysia’s benchmark index retreated as profit-taking in key heavyweights weighed on sentiment, while overall market activity remained active. Summary FBM KLCI fell 0.83% to 1,684.93 , dragged by losses in banking and selected large-cap names, despite steady trading participation. Market Performance FBM KLCI : 1,684.93 (-0.83%) FBM Mid 70: -0.00% (flat) FBM Small Cap: -0.23% FBM ACE: +0.20% Broad market was mixed , with weakness concentrated in large caps. Market Breadth & Trading Activity Total volume: 3.54 billion shares Total value: RM4.19 billion Gainers: 456 Losers: 678 Unchanged: 550 Market breadth turned negative , reflecting cautious sentiment. Top Movers – KLCI Gainers Axiata (6888.MY) +1.54% Petronas Gas (6033.MY) +1.18% Sunway (5211.MY) +1.15% Losers Hong Leong Bank (5819.MY) -3.29% Maybank (1155.MY) -3.02% CIMB (1023.MY) -2.47% Banking sector weakness was the main ...
Maintain our neutral call with target price (TP) of RM2.36
Yesterday, AirAsia announced its 2QFY16 preliminary operating statistics, delivering strong load factor at 85.5% (1QFY16 at 85.6%). Its traffic volume saw a 12.2% YoY growth to 16.8bn revenue-passenger-kilometres (RPKs) on the back of increased in passengers carried by 12.2% YoY. However, the operational numbers was flat QoQ. AirAsia is scheduled to release its 2QFY16 results and passenger yield data on 29th August 2016. We maintain our Neutral call on AirAsia, with target price of RM2.36, pegged on 8x FY17F EPS. Our target price is based on enlarged share capital, including the proposed share placement to Tune Live Sdn Bhd.
Malaysia (MAA) operating statistics. Malaysia AirAsia (MAA) increased in passengers’ carried by +10.0% YoY to 6.55m, though its seat capacity was flat YoY (+1.4%) at 7.54m. Available-seat-kilometres (ASK) increased by +9.8% YoY to 10.0bn and revenue-passenger-kilometres (RPK) increased by +18.6% YoY to 8.6bn. Meanwhile, passenger loads remain strong at 86.8% during the quarter compared to 80.1% in 2QFY16. However, QoQ operational numbers was flat with load at 85.6%. (Table 2).
Associates’ performance. Thailand (TAA) remains strong with load factor at 83.0% on the back of passenger volume and capacity growth YoY increased by 17.7% and 12.9% respectively, due to new route commencements, additional route frequencies and 6 additional aircraft was added to its fleet. Indonesia (IAA)’s load factor QoQ improved by 3.1ppts to 83.1% and passengers volume increased by 3.9%. Strong load was recorded in Philippines (PAA) at 90.8%, with passenger carried up by 3.0% YoY and seat capacity decreased by 8.9%. (Table 3-6)
Pending more details on yield data and results for 2QFY16, we expect passenger fares in 2Q to remain strong due to travel demand recovery. Overall, 2QFY16 operational numbers was stronger than a year before, but flat QoQ. We maintain our Neutral call with target price of RM2.36, pegged on 8x FY17F EPS, as we believe the positives have already been priced-in amid the continued run-up in share prices. Our target price is based on enlarged share capital, including the proposed share placement to Tune Live Sdn Bhd which is expected to complete by this quarter.
Source: PublicInvest Research, 27 July 2016
Yesterday, AirAsia announced its 2QFY16 preliminary operating statistics, delivering strong load factor at 85.5% (1QFY16 at 85.6%). Its traffic volume saw a 12.2% YoY growth to 16.8bn revenue-passenger-kilometres (RPKs) on the back of increased in passengers carried by 12.2% YoY. However, the operational numbers was flat QoQ. AirAsia is scheduled to release its 2QFY16 results and passenger yield data on 29th August 2016. We maintain our Neutral call on AirAsia, with target price of RM2.36, pegged on 8x FY17F EPS. Our target price is based on enlarged share capital, including the proposed share placement to Tune Live Sdn Bhd.
Malaysia (MAA) operating statistics. Malaysia AirAsia (MAA) increased in passengers’ carried by +10.0% YoY to 6.55m, though its seat capacity was flat YoY (+1.4%) at 7.54m. Available-seat-kilometres (ASK) increased by +9.8% YoY to 10.0bn and revenue-passenger-kilometres (RPK) increased by +18.6% YoY to 8.6bn. Meanwhile, passenger loads remain strong at 86.8% during the quarter compared to 80.1% in 2QFY16. However, QoQ operational numbers was flat with load at 85.6%. (Table 2).
Associates’ performance. Thailand (TAA) remains strong with load factor at 83.0% on the back of passenger volume and capacity growth YoY increased by 17.7% and 12.9% respectively, due to new route commencements, additional route frequencies and 6 additional aircraft was added to its fleet. Indonesia (IAA)’s load factor QoQ improved by 3.1ppts to 83.1% and passengers volume increased by 3.9%. Strong load was recorded in Philippines (PAA) at 90.8%, with passenger carried up by 3.0% YoY and seat capacity decreased by 8.9%. (Table 3-6)
Pending more details on yield data and results for 2QFY16, we expect passenger fares in 2Q to remain strong due to travel demand recovery. Overall, 2QFY16 operational numbers was stronger than a year before, but flat QoQ. We maintain our Neutral call with target price of RM2.36, pegged on 8x FY17F EPS, as we believe the positives have already been priced-in amid the continued run-up in share prices. Our target price is based on enlarged share capital, including the proposed share placement to Tune Live Sdn Bhd which is expected to complete by this quarter.
Source: PublicInvest Research, 27 July 2016
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