14 December 2016
Analysts have maintained earnings forecasts for Malaysia Airports Holdings Bhd’s (MAHB) financial year 2016-2017 (FY16-17) given that passenger growths in Malaysia and Turkey were in line with targets.
In a filing to Bursa Malaysia, MAHB said its system of airports including Istanbul SGIA (ISG) recorded 9.8 million passengers in November 2016, a 7.3 per cent growth over November 2015.
Meanwhile, total passenger growth for Malaysian airports and ISG in Turkey which were up 5.8 per cent and 5.3 per cent year on year (y-o-y) year to date (YTD) came in within the research arm of Kenanga Investment Bank Bhd’s (Kenanga Research) targets of six per cent and seven per cent, respectively.
According to Kenanga Research, in November, KLIA’s main hub registered a growth of 32.8 per cent y-o-y with international and domestic passengers registering positive growth rates of 28.7 per cent and 45.0 per cent, respectively.
Kenanga Research noted that y-o-y YTD, KLIA’s main terminal registered record growth of 10.9 per cent against previous months’ growth of minus 12.9 per cent to nine per cent.
“Meanwhile, klia2 showed negative growth of 3.2 per cent y-o-y due to passenger traffic moderating from Malindo and Lion Air’s shift in operations,” it said in a research report.
On another note, Kenanga Research highlighted that ISG Airport’s passenger growth for November was up 2.5 per cent y-o-y registering its second consecutive growth post the bombing, military coup and declaration of state of emergency in Turkey.
“The growth was mainly buoyed by its domestic passenger, which registered a healthy growth of 6.1 per cent while international passengers were still in negative territory (-5.1 per cent),” the research arm observed.
Post review of November traffic figures, Kenanga Research made no changes to the research arm’s FY16-17 earnings forecasts as passenger growths in Malaysia and Turkey are in line with its targets.
All in, Kennaga Research maintained ‘outperform’ with an unchanged target price of RM7.31 per share.
The research arm believed further upside to target price lies with extension of operating agreement, stronger traffic from the international front and faster-thanexpected recovery from Turkey operations.
Original Source: theborneopost.com
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