Friday 29 Mar 2024
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KUALA LUMPUR (Nov 30): Affin Hwang Capital Research has maintained its “Buy” rating on AirAsia Group Bhd at RM2.98 with a lower target price of RM3.20 (from RM4.10) and said AirAsia  reported a weak set of results – 3Q18 core pretax profit fell by 83% year-on-year to RM68.7 million (-75% q-o-q) on higher fuel cost, lower load factor and losses from associates.

In a note today, the research house said the group’s 3Q18 headline net profit was however higher at RM916 million (+81% y-o-y, +153% q-o-q) after booking in forex / disposal gains and large deferred tax assets.

AirAsia has declared a special dividend of 40 sen.

“Overall,  the results were below market and our expectations.

“We cut our 2018-20E EPS by 19-22% after incorporating the weak 9M18 results and higher fuel cost assumption.

“In tandem, we have lowered our target price to RM3.20, based on an unchanged 10x 2019E target PER. Maintain Buy – AirAsia’s expected 12-month total return of 20% looks attractive,” it said.

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