Capital A (former Air Asia)

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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Re: Air Asia (incl QZ8501)

Postby winston » Wed Oct 23, 2019 8:06 am

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Aug 29, 2019

Valuation

Looking forward, the escalating US-China trade war and the devaluation of Yuan are likely to hurt any companies that are involved in tourism and hospitality industries.

We do not think AAGB will be spared. However, taking a longer-term view where AAGB is gaining
market share over its peers with its additional capacity would likely bode well for future profitability.

As such, we reiterate our Buy recommendation with unchanged target price of RM2.60/share, based on 10x CY20 EPS.

We are in AAGB for the long haul.

Source: TA Securities
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Re: Air Asia (incl QZ8501)

Postby winston » Sun Jan 05, 2020 8:54 am

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AirAsia Group Bhd (AAGB)
Price: RM1.69

AirAsia Group was weighed down by the adoption of MFRS 16 which led to the higher-than-expected finance cost. However, finance cost movement is expected to be flat in CY20.

Although MFRS 16 will continue to feature in the medium term, AAGB is expected to gain from lower amount of interest as the tenure reaches the end of the lease term.

The 18.8% year-on-year (y-o-y) increase in passengers for AAGB contributed to higher 9MFY19 ticket sales of 18.9% y-o-y to RM6.6bil, also resulted in the airline’s related ancillary income revenue growing by 15.3% y-o-y.

Non-airline ancillary segments, total revenue more than quadrupled to RM475.2mil, mostly coming from Teleport at 70.2%.

The performance of Teleport will be enhanced by:
(i) the launch of “teleport.social” – a platform enabling sellers to integrate with Teleport’s logistics infrastructure;
(ii) JV with Gobi Partners in EasyParcel; and
(iii) direct interline agreement with Lufthansa Cargo.

In addition, revenue from AAGB’s new products such as BigPay and AirAsia.com, is expected ramp up next year.

As such, we expect the contribution of non-airline ancillary revenue to overall ancillary revenue to increase from 23.3% in 9MFY19 to around 30.0% in FY20.

AAGB has hedged 69% to 82% of their fuel requirements at US$60 per barrel in FY20, mitigating oil price volatility.

Moreover, AAGB will be having four A321neos by year-end and six more in FY20.

The shift towards aircraft equipped with fuel efficient technology will lead estimated fuel savings of 15% by FY20, translating into 10% reduction in cost per seat as it has 50 additional seats compared with the A320neo, which bodes well with the expected increase in tourists from VMY2020.

Source: MIDF
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Re: Air Asia (incl QZ8501)

Postby winston » Tue Feb 18, 2020 9:26 am

vested

Heading for record FY20F losses on Covid-19

Reiterate our Reduce call with a lower target price of RM1.03, as we expect the Covid-19 outbreak to cause AAGB to report heavy losses in FY20F.

Our target price is now based on a lower CY20F P/BV multiple of 0.73x, 2 standard deviations below the mean since 2013 (previously P/BV of 1x).

In the past year, AAGB had already suffered from losses arising from its aircraft sale and leasebacks; Covid-19 makes the medicine more bitter.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 5BEB159457
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Re: Air Asia (incl QZ8501)

Postby winston » Wed Feb 19, 2020 2:56 pm

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AirAsia active, falls 2.52% on potential RM1.1b loss amid Covid-19 outbreak

by Arjuna Chandran Shankar

KUALA LUMPUR (Feb 19): Shares in low-cost carrier AirAsia Group Bhd (AAGB) fell by as much as 2.52% at mid-morning, following a report by CGS-CIMB Research that flagged a potential core net loss of RM1.1 billion for the aviation group amid the ongoing Covid-19 outbreak.

As of 10.45am, shares in AAGB fell 3 sen to RM1.16, giving the group a market capitalisation of RM3.88 billion.

AAGB saw 14.77 million shares traded and is the sixth most actively traded counter on Bursa Malaysia today.

At the time of writing, AAGB is just one sen away from its one-year low of RM1.15 on Feb 4, 2020.

CGS-CIMB Research had opined in a note to investors that it was expecting AAGB to post a core net loss of RM1.1 billion in the financial year ending Dec 31, 2020 (FY20), from its previous expectation of a RM147 million core net profit.

This was due to the impacts of the Covid-19 outbreak on passenger movements, particularly as AAGB's operations in Malaysia, Thailand and the Philippines have significant exposure to the North Asia region, which includes China.

These impacts include lower passenger demand and yield.

The research house had also slashed its target price (TP) on the low-cost carrier to RM1.03, from RM1.58 previously, while maintaining its hold call on the stock.

The lower TP is based on a lower 2020 price-to-book value (P/BV) of 0.73 times (from 1 times), which is two standard deviations below its P/BV mean since 2013.

“AAGB is less able to tolerate unexpected changes to demand and yields given that its profitability has already been ravaged by the higher cost of leasing planes, with virtually all of its planes having been sold and leased back in the past two years.

AAGB has already lost its lustre among investors, and Covid-19 will turn conditions far more hostile,” CGS-CIMB said in a note Feb 17.

In terms of analyst coverage, AAGB has 22 analysts covering it — with 10 sell calls, 10 hold calls and only two buy calls.

Its consensus TP stands at RM1.41 — with TPs among the analysts ranging from RM1 to RM2.16.

Source: The Edge

https://www.theedgemarkets.com/article/ ... 9-outbreak
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Re: Air Asia (incl QZ8501)

Postby winston » Mon Mar 02, 2020 1:44 pm

Vested (very small position to follow their story)

Cloudy prospects

FY19 forecast below expectations

COVID-19 could derail growth plans

UK SFO allegations may lead to near-term volatility for the stock

Maintain HOLD with lower TP of RM1.15

Source: DBS

https://researchwise.dbsvresearch.com/R ... =fbjaikiia
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Re: Air Asia (incl QZ8501)

Postby winston » Tue Jul 07, 2020 9:12 am

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Despite widely expected to incur hefty losses and trading at undemanding 1x P/B (vs 10Y average 1.5x), Airasia (RM0.895-SELL-TP RM0.48) is likely to experience further selling pressures today after reported a RM803m net loss in 1QFY20.

Fundamentally, the on-going uncertainty of Covid-19 as well as the “new normal” is affecting consumer behaviour in air travel demand.

The gradual opening of domestic and international routes is expected to introduce stiff competitions among airlines, as they compete for the now smaller pie market in order to maximise their fleet utilization.

There is a further risk of AAG’s further capital raising exercise (cash calls) in order to ensure sufficient liquidity.

Technically, share prices may continue to witness selling pressures.

Key supports are pegged at RM0.80 (50% FR from RM0.50-1.10), RM0.75 (uptrend line support from Covid-19 low at RM0.50) and RM0.70 levels.

On the flip side, a decisive breakout above RM0.945 (2 July high) will spur prices higher to RM0.96 (23.6% FR) and RM1.00 territory.

Source: HLIB
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Re: Air Asia (incl QZ8501)

Postby winston » Wed Jul 08, 2020 4:47 pm

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Broker's take: Maybank upgrades AirAsia to 'hold' on higher fares, resumed flights

MALAYSIAN budget carrier AirAsia Group is now rated “hold”, up from “sell”, thanks to narrowing downside risk, according to Maybank's research report on Tuesday evening.

However, trading in its shares was halted on Wednesday morning after its auditor said there were material uncertainties that cast doubt on the company’s ability to continue as a going concern.

By 2.40pm on Wednesday, after the trading halt was lifted at 2.30pm, AirAsia shares had tumbled 9.9 per cent or RM0.085 to RM0.77.

In an unqualified audit opinion on the airline's earnings issued late on Tuesday, Ernst & Young said the financial statements were prepared on a going concern basis - which is dependent upon a recovery from the Covid-19 pandemic and the success of fundraising efforts.

Prior to that, in Maybank's report, analyst Yin Shao Yang cut the target price on the stock to RM0.92 per share, from RM1.56 previously, based on his estimate of a 1.4-times price to book value for FY2021.

The Kuala Lumpur-listed counter closed at RM0.855 on Tuesday, down RM0.04 or 4.5 per cent.

Source: Business Times

https://www.businesstimes.com.sg/transp ... ed-flights
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