Stock With Momentum: AirAsia X

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This article first appeared in The Edge Financial Daily, on March 2, 2016.


AirAsia X Bhd (+ve)

SHARES of AirAsia X Bhd (fundamental: 0.2/3; valuation: 0/3) triggered our momentum algorithm yesterday as it jumped by 6% to close at 26.5 sen, with 100.8 million shares traded. The group was also the top active stock yesterday.

This was in comparison to its 200-day average volume of 17.1 million shares.

Its warrant also saw a 14.29% surge to 8 sen from 7 sen, after 18.1 million shares changed hands.

To date, the group’s shares have jumped 47.2% to 26.5 sen from its closing of 18 sen on Dec 31, 2015. This means the stock has significantly outperformed the benchmark index, FBM KLCI, which had dropped 1.28% in the same period.

AirAsia X’s shares gained interests and dominated the trading activity yesterday after the group announced its fourth quarter ended Dec 31, 2015 (4QFY15) earnings last Friday, which saw the group returning to the black with RM201.6 million net profit, compared with a net loss of RM168.5 million in the corresponding period in 2014.

Excluding exceptional items such as forex gain and tax incentives, AirAsia X recorded a net profit of RM94.5 million. Besides the exceptional items, the net profit is attributed to higher revenue and lower fuel costs.

As for its latest quarterly revenue, it jumped 4.5% to RM853.9 million.

For the full year FY15, its net loss narrowed to RM360.2 million from RM519.4 million a year ago, on the back of an improved revenue, which rose 4.3% to RM3.063 billion.

In a bourse filing, AAX’s management said forward loads are higher than prior year, despite the higher average fare compared to its previous year.

“Passenger numbers are expected to be strong in the first quarter of 2016, in line with the seasonal patterns,” AirAsia X said of its prospects.