Friday 29 Mar 2024
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KUALA LUMPUR (March 23): Hong Leong IB Research has maintained its “Buy” rating on AirAsia Bhd at RM2.22 with an unchanged target price of RM3.30 after the low cost carrier said it would dispose 11 A320s for US$271 million (RM1 billion) under sales and lease back agreements, which would see AirAsia gain US$45 million (RM166.5 million).

In a note Monday, the research house said the exercise would improve AirAsia’s balance sheet and cashflow.

“Group CEO Tan Sri Tony Fernandes has quashed market rumours on AirAsia raising equity cash, given the airline’s strong cash position.

“It is expected to uphold its dividend policy of 20% payout from net operating profit, with the announcement of dividend likely by end April.

“Remained positive on AirAsia’s long-term growth. Maintained Buy with unchanged target price of RM3.30 based on SOP,” it said.

 

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