27 Apr 2012
Despite a strong first quarter, Malaysia Airports Holdings Bhd (MAHB) can expect a challenging second half this year, says HwangDBS Vickers Research.
"We are keeping our forecast for financial year 2012 as we expect MAHB to post weaker earnings in the second half.
"This is premised on higher staff cost as MAHB will add 500 to 800 personnel for the Kuala Lumpur International Airport Two (klia2), with training slated to start between the third and fourth quarters of the year," HwangDBS said in a report.
Meanwhile, OSK Research expects MAHB staff cost to increase further and take its toll on overall margins.
"Staff cost will show an increase of four to six per cent to reflect annual increments, though we anticipate it to be much higher in the 2013 financial year due to the enlarged workforce once the klia2 comes on-stream by April next year," it said a report.
OSK also said MAHB management continued to eye opportunities for airport acquisitions but it was still unknown at this juncture whether its current Managing Director, Tan Sri Bashir Ahmad Abdul Majid, who is due to retire in June, would stay on until the completion of klia2.
But, MIDF Research foresees that klia2 would not have any impact on MAHB’s this year and next year.
"The accelerating traffic growth in the Low Cost Carrier Terminal means increasing urgency for klia2 and the integrated complex will significantly fuel MAHB’s retail and rental collections.
"While klia2 will not have any impact in financial year 2012 and 2013, we believe that it will be the catalyst for MAHB’s future growth," the research house said in a statement. — BERNAMA