Friday, August 10, 2012

Malaysian Airline System: Maintain Hold - 2Q12: Losses but at reducing quantum

Malaysian Airline System: Maintain Hold - 2Q12: Losses but at reducing quantum

  • Climbing out of the abyss. 2Q12 is expected to be loss making due to the impact of high fuel prices, a weak yield environment and on-going business transformation.
  • We expect good improvement YoY and QoQ as MAS has ceased many severely loss-making routes in Feb, but it is still a long way from full year profitability.
  • Maintain Hold, with an unchanged target price of MYR0.97/share, pegged to 10.0x 2013 PER, which is the mid-level valuation of the aviation cycle.
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Source: Maybank Research - 10 August 2012

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