KUALA LUMPUR: Research houses have tweaked down Malaysia Airports Holdings Bhd’s (MAHB) target price and profit forecast after its disappointing financial year 2022 (FY2022) performance and amid higher operating costs.
Kenanga Research said while MAHB passenger numbers will continue to grow as air travellers return, its earnings prospects are clouded by the Malaysian Aviation Commission’s proposal not to hike airport charges.
“We cut our FY2023-FY2024 net profit forecasts by 2.0 per cent each, lower our target price by 3.0 per cent to RM6.80 from RM7.00, and reiterate our ‘market perform’ call,” it said in a note.
MIDF Research said forward earnings in FY2023-FY2024 were revised down marginally by 1.3 per cent, allowing it to derive a slightly lower target price of RM7.35 and maintained a “neutral” call on MAHB.
“We make no changes to our passenger traffic assumptions.
“Relative to their respective 2019 levels, in FY2023, we expect Malaysia passenger traffic to recover to 85 per cent (domestic: 90 per cent, international: 80 per cent) and Turkeye passenger traffic to recover to 107 per cent (domestic: 95 per cent, international: 120 per cent),” it said.
CGS-CIMB cuts its target price forecast to RM6.80 after reflecting on MAHB’s future higher operating expenditure.
It said the airport’s FY2022 core net loss of RM221 million was wider than its RM60 million loss forecast, due to an unexpected surge in costs, including for staff bonuses.
At 12 pm, MAHB rose 16 sen to RM6.95 with about 1.5 million shares changing hands. – BERNAMA
