AirAsia (BUY)
Additional Income Stream from New JV
§ AirAsia will set up a new JV with Tune Money in association with launching of customer loyalty program and pre-paid card services under the brand 'BIG' in Malaysia.
§ 'BIG' loyalty program is expected to build-up customer brand loyalty for AirAsia and further boost the demand for low cost travelling.
§ AirAsia reduces its overall risk (instead of setting up the program by itself) and does not incur any upfront cash.
§ AirAsia earns upfront revenue from the sales of 'Loyalty Points' and equity account the JV's earnings.
§ We believe the program will be gradually introduced in other countries, where AirAsia Group operates.
§ The term of the Commercial Agreement is for a period of 2 years and the estimated transaction value is RM30.4m.
§ Relating to Thai AirAsia IPO, AirAsia clarified that the exercise is on schedule for 4Q11 listing.
§ Maintain BUY with unchanged TP of 4.50.
FBM KLCI - Crucial 1400 support with potential technical rebound
§ Critical level to watch is the 1400 psychological support as a break below will trigger further pressures towards 1367 pts (61.8% FR from peak 1597 and low 1224). However, some technical indicators are suggesting potential technical rebound with immediate resistance areas at 1444 (10-d SMA) and 1457 (mid Bollinger band).
IJM: Potential relief rally amid heavy oversold positions
§ Current FY12 P/E of 14x is undemanding vs. 10-eyar average P/E of 15x. Technical indicators are grossly oversold after recent selldown, implying potential relief rally soon. Upside targets are RM5.30 (lower Bollinger band), RM5.46 (5-d SMA) and RM5.64 (10-d SMA). Immediate supports are RM4.87 (38.2% FR) and RM4.71 (150-d SMA – monthly chart). Cut loss below RM4.85.
No comments:
Post a Comment