KUALA LUMPUR (Nov 23): AirAsia X Bhd dipped as much as one sen or 2.5% after analysts downgraded the budget airline on the company's latest reported core net profit, which was below forecast.
AirAsia X shares fell to their lowest so far today at 39 sen, giving the company a market capitalisation of RM1.64 billion.
At 12:30pm, the stock settled at 39.5 sen. Some 35 million shares changed hands, making AirAsia X the second most actively traded stock on Bursa Malaysia.
At 3:11pm the stock changed hands at 39 sen.
Yesterday, AirAsia X reported a net profit of RM11.03 million for its third quarter ended Sept 30, 2016 (3QFY16) versus a net loss at RM288.19 million a year earlier.
9MFY16 net profit stood at RM191.53 million against a net loss of RM547.05 million a year earlier.
Today, CIMB Investment Bank Bhd analyst Raymond Yap said CIMB cut its FY16 AirAsia X earnings per share (EPS) forecast by 36%. He said CIMB also cut its AirAsia X share target price (TP) to 19 sen from 21 sen with an unchanged "reduce" call.
"Our 36% EPS cut for FY16F is driven by a downward revision in the ringgit exchange rate against the US$ as well as a 1.5% cut in average yield to 13.83 sen/RPK (revenue passenger kilometers).
"AAX's (AirAsia X) 9MFY16 core net profit was probably 10% below expectations, accounting for about 45% of our previous full-year forecast, on lower-than-expected yields. Still, there is no denying that it was a good performance, recovering dramatically from last year's losses due to low oil prices coinciding with MAS (Malaysia Airlines Bhd) capacity cuts," he said.
MIDF Amanah Investment Bank Bhd analyst Tay Yow Ken said MIDF upgraded AirAsia X shares to "buy" with a higher TP of 50 sen from 40 sen previously.
"AirAsia X's 9MFY16's core net profit of RM120.5 million (+156%yoy) met our estimates but fell short of consensus representing 73% and 53% of forecasts respectively.
"We reduce our FY17 core earnings forecast by 26% after assuming higher aircraft fuel, maintenance and operating lease expenses associated with a higher USD/MYR exchange rate of 4.2 from 4.0," Tay said.