Air Asia (incl QZ8501)

Re: Air Asia (incl QZ8501)

Postby winston » Thu Sep 15, 2016 1:00 pm

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AirAsia: Time To Sell, Says JP Morgan

By Shuli Ren

AirAsia (5099.Malaysia) has soared 127% this year, as its Malaysian operation improved and after the airline said it would sell a majority stake in its leasing arm Asia Aviation Capital.

JP Morgan resumed coverage on the Malaysian low-cost airline with a Sell rating and 2.50 Malaysian ringgit per share price target, implying another 14% downside.

Analyst Hoy Kit Mak wrote:

We believe that share price performance is now more at risk due as its key associates – Indonesia Air Asia and Philippines AirAsia – remain loss-making at the operating level, increased competitive intensity in each of its markets (restructured Thai Air in Thailand, Lion Air in Indonesia, Cebu Air & Philippine Airlines in Philippines and Jet Airways, Indigo & SpiceJet in India), sale of majority stake in Asia Aviation Capital (AAC) could result in a net reduction of earnings estimates, potential unanticipated FX losses in 2H16 and downside risks to consensus expectations (our estimates are 25-30% below consensus for 2017-18E).

JP Morgan’s price target of M$2.50 implies 7 times their forward EBITDAR estimates, in line with AirAsia’s average valuation since 2014.

“We believe it is more reasonable to value AirAsia at 7x until we see a more sustained recovery in operating profitability at its associates. Our price target implies 2017E P/B of 1.2x vs ROE of 14% which seems fair.”

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... jp-morgan/
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Re: Air Asia (incl QZ8501)

Postby behappyalways » Thu Nov 24, 2016 6:07 pm

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Re: Air Asia (incl QZ8501)

Postby winston » Sun Jan 21, 2018 10:08 pm

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AIRASIA BHD

By Intan Farhana Zainul

AirAsia’s iconic head honcho Tan Sri Tony Fernandes is never short of positive descriptions about his company, usually communicated via his tweets.

The latest claim: that BigPay, which is AirAsia’s own e-wallet and prepaid card, which Fernandes hoped will be worth more than AirAsia itself.

That is an interestingly claim, considering that AirAsia has a market capitalisation today of close to RM13bil. Still, the idea may not be outlandish, considering the lofty valuations that many technology firms enjoy.

In BigPay’s case, it has the captive audience of the community of AirAsia users. Specifically, the BigPay e-wallet service aims to tap into AirAsia’s database of 63 million passengers.

Another key attraction: Fernandes is already saying the e-wallet will be able to offer at least 4% savings on travel costs and exchange rates. Yes, foreign currency remittances and exchange is a big area being disrupted by technology.

And in BigPay’s case, they just have to find the right technology platform to plug into their millions of existing users to offer the savings.

E-wallets have a myriad of other potential revenue streams, especially when you factor in big data and cross selling of other products and services to this community.

Technology aside (especially considering that Fernandes insists that the research analyst community isn’t aware of and are not factoring in the airline’s digital strategy) there already exists 17 buy calls on the stock, going by Bloomberg data.

They give the stock a consensus 12-month price target of RM3.91, which incidentally is not far away from the stocks’ current price of RM3.86. AirAsia may be trading at its all-time high but new factors are coming into play.

For one, the stronger ringgit that would increase travelling activities. AirAsia is adding 36 aircraft to its existing capacity which gives an immediate topline growth.

Finally, there is the possibility of a special dividend from the disposal of assets.

Source: The Star

Read more at https://www.thestar.com.my/business/bus ... 85vcWrw.99
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Re: Air Asia (incl QZ8501)

Postby winston » Mon May 14, 2018 7:37 am

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AirAsia boss Tony Fernandes apologises for ‘foolish’ Malaysia election stunt

Fernandes said he buckled under pressure from former PM Najib’s government and even painted a plane the ruling party’s colours to try to appease officials

Source: SCMP

http://www.scmp.com/news/asia/southeast ... tion-stunt
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