KUALA LUMPUR (May 21): All hopes are on AirAsia X Bhd (AAX) being able to successfully restructure its debt, with new equity funding from existing and new investors, to provide sufficient capital to restart its operations when international borders reopen, said PublicInvest Research.
In a note, the research house noted that for the 15 months ended March 31, 2021 (15MFY21), the group’s core loss widened to RM7.01 billion, from RM1.42 billion for 12MFY21, which is 354% and 360% of its and the consensus 18-month net loss estimates respectively. AAX has changed its financial year end to June 30, 2021 from Dec 31, 2020.
The research house has made no changes to its forecasts for now as the group is still in the midst of its debt restructuring process.
It retained its "underperform" call on AAX, with a 12-month target price (TP) of one sen.
For 18MFY21, PublicInvest Research forecast AAX to post a net loss of RM1.97 billion. For FY22, meanwhile, it expects AAX to post a net loss of RM783 million, followed by a net loss of RM673 million for FY23.
From an earnings per share (EPS) perspective, AAX’s cumulative EPS are expected to be a loss per share (LPS) of 47.5 sen for 18MFY21. For FY22, AAX is forecast to post a LPS of 17.8 sen and for FY23 a LPS of 16.2 sen.
AAX posted its largest-ever quarterly net loss of RM5.67 billion for the quarter ended March 31, 2021, with revenue shrinking 29.6% quarter-on-quarter (q-o-q) to RM38.49 million as the majority of its fleet remained grounded since mid-April last year amid the Covid-19 pandemic.
The net loss was also dragged by RM5.21 billion in operating expenses for the most recent financial quarter from RM45.06 million for the immediately preceding quarter. It also booked a total impairment of receivables of RM337 million relating to lease rental and maintenance reserves due from a joint venture (JV) through a third-party leasing intermediary.
AAX has also stated that it is facing severe liquidity constraints, and it plans more job cuts.
Shares in AAX were down 7.14% or half a sen lower at 6.5 sen at the time of writing today, valuing it at RM252.78 million, with 15.25 million shares traded.
Parent company AirAsia Group Bhd, meanwhile, had fallen by 4.19% or 3.5 sen to 80 sen, yielding a market capitalisation of RM3.05 billion, with 7.58 million shares changing hands.