Friday, November 18, 2011

Malaysian Airline System RM1.41: Hold

3Q11: More losses?
High fuel coupled with soft yields. MAS will release its 3Q11 results in late Nov. We expect 3Q11 to be loss-making due to the impact of 45% higher fuel price YoY and the globally soft yield environment. The challenging global economy is undermining business activity, business confidence and the sentiment to travel. Against this backdrop, we have lowered our earnings forecasts and downgrade MAS to a Hold (from Buy) with a new target price of RM1.55 (from RM2.70)

Maybank research (18 November 2011)

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