KUALA LUMPUR (July 24): AffinHwang Capital Research has maintained its “Sell” rating on Malaysia Airports Holdings Bhd (MAHB) at RM6.17 with a lower target price of RM5.40 (from RM5.90) and said that on the back of a flat passenger movement growth in 1H15, coupled with high operational cost of KLIA2 and loss-making Istanbul’s Sabiha Gocken Airport (ISGA), it expects MAHB to continue registering a core net loss in 2Q15 results.
In a note today, the research house lowered its 2015E forecast to a loss after imputing i) a higher depreciation charges (impact from KLIA 2); ii) a higher interest expense (impact from SGIA) and (iii) softer passenger movement of 5% from 10% previously; and (iv) updated 2014 audited figures.
“We have revised downwards our FY15E EPS forecast and lowered our target price to RM5.40 from RM5.90.
“Maintain Sell,” it said.