24 July 2013
“This will likely thwart back further share price outperformance. On the positive side, MAHB has been receiving more new airlines landing into KLIA, which will result into higher traffic,” it said.
It added MAHB continues to be Affin’s preferred choice for exposure to the tourism theme and benefits from airlines fleet expansion. Affin said the stock is also well buffered from the volatility of jet fuel prices.
Affin said excluding the construction profit of RM36.5mil, MAHB’s first half 2013 core net profit of RM191mil is within its expectation, accounting for 41% of the full year forecast of RM465.7mil and 47% of consensus estimates.
“We expect earnings to come in stronger in second half 2013 due to seasonality. As expected, no dividend was declared for the quarter,” it said.
It said excluding construction revenue, MAHB’s second quarter 2013 operational revenue grew by 12.8% on-year driven by a 15% growth in airport operations income.
Affin said MAHB’s operating costs, excluding construction cost in first half 2013 grew by 22.2% primarily caused by an 11.8% increase in staff costs woith higher bonus payment, additional recruitment and salary adjustments, 5.1% increase in utilities expense and more-than-doubled jump in user fee to RM108mil from RM46.7mil last year.
“The increase is because the amount paid is fully recognized compared to only 50% previously, as MAHB has fully settled the residual balance owned to the government in April 2013,” it said.