Malaysia Airports Holdings

[winston]

vested

MAHB records 9.6 million passenger traffic in November

Registered 9.6 million total passenger movements in November 2023, reaching 83.3% of 2019 levels.

Driven by the international sector, which registered 4.9 million passengers and sustained a monthly recovery rate above 89.5% over 2019 levels since July 2023.

Domestic passenger movements trail at 4.7 million passengers, an increase of 10.5% over November 2022.

Airports in Malaysia recorded 6.6 million passenger movements, up 27.4% compared to November 2022, reaching 76.5% of pre-pandemic levels.

Source: The Star

https://www.thestar.com.my/business/bus ... n-november

[winston]

vested

TA Securities raises MAHB's target price to RM8.20, names it one of the top picks for 2024

By Lam Jian Wyn

TA Securities said MAHB is one of its top stock picks for the year because it believes that the airport operator will benefit from increased travel demand to China and Malaysia, thanks to visa-free entry effective from Dec 1, 2023.

"In addition, we believe airline companies would continue adding capacity to the market, thereby reducing the airfare further, which would bode well for MAHB," it said.

According to the management, the average load factor for the domestic sector in November recorded above 80% for the second consecutive month, with the airline's seat capacity offered at 66% of pre-pandemic levels,".

Meanwhile, passenger movements at the Istanbul Sabiha Gökçen International Airport (ISG) shrank by 10.4% m-o-m, though it rose by 12.4% y-o-y.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/695765

[winston]

not vested

All systems go for 2024
Maintain BUY with higher DCF-TP of MYR8.53 (+7%)

We remain bullish on MAHB. 4Q23 results may come in strong and foreign airlines are showing more interest in flying to Malaysia than before preCOVID times.

Moreover, PSCs in Malaysia will still be hiked by the historical 5-year cumulative CPI minus 0.1% on 11 Feb 2024 as stipulated under its current Operating Agreement (OA) with or without the new OA.

We retain our earnings estimates and roll forward our valuation base year to endFY24E from end-FY23E and raise our DCF-TP to MYR8.53 from MYR7.96.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/360581.pdf

[winston]

not vested

What could be driving the share price surge?

Speculation on a potential privatisation may have triggered a sharp share price rally, but governance and regulatory issues may give the buyer pause.

Negotiations for a longer ISG concession, as well as higher aeronautical tariffs and a new OA in Malaysia, may be more concrete positives.

Reiterate Add with an unchanged SOP-based end-CY24F TP of RM8.05.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... 6C30EA7824

[winston]

not vested

Neutral on restructuring of aeronautical charges

Maintain HOLD call and DCF-TP of MYR8.91

In the lead up to the new Operating Agreement which MAHB believes is imminent, Malaysian Aviation Commission (MAVCOM) has restructured MAHB’s aeronautical charges.

We believe that the restructuring is earnings neutral.

Going forward, MAVCOM will release another consultation paper that will guide the Regulated Asset Base (RAB) model MAHB will employ from 1 Jan 2027 onwards but we maintain our estimates, HOLD call and MYR8.91 DCF-TP as it is currently beyond our investment horizon.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/370568.pdf

[winston]

not vested

Terms of the new OA as per expectations

MAHB announced yesterday its new Operating Agreement (OA), which takes effect from 18 Mar 2024. The terms of the OA are in line with expectations.

Reiterate Hold on MAHB with unchanged SOP-based target of RM8.31, which is based on a fundamental DCF valuation.

We believe its share price is moving on account of a potential general offer widely being talked about in investment circles.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... 89AA5629DC