AAX (5238) : Affin Hwang Research maintains Sell on AirAsia X
KUALA LUMPUR: Affin Hwang Research has maintained its Sell call on AirAsia X (AAX) with a target price of 45 sen as it lowered AAX's forecast to losses instead of profit.
In a note on Thursday, the research house said AAX's 9M14 core net loss was way below Affin Hwang's and market estimates.
Affin Hwang Research pointed out AirAsia X reported a larger-than-expected core net loss of RM176mil, taking 9M14 core net loss to RM333mil.
"This was grossly below our and street estimates. The discrepancy against our forecast was mainly due to lower-than-expected average fares as well as higher fuel cost which was US$132/barrel vs our assumption of US$120/barrel," it said.
As part of its business turnaround plan, Affin Hwang said AAX is implementing three main strategies which are capacity management – deferring aircraft delivery and redeploying capacity; raising cash via sale of aircraft and implementing sale and lease back option instead of owning aircraft; and cost cutting through amongst others, some consolidation of backroom office with AirAsia.
http://www.thestar.com.my
KUALA LUMPUR: Affin Hwang Research has maintained its Sell call on AirAsia X (AAX) with a target price of 45 sen as it lowered AAX's forecast to losses instead of profit.
In a note on Thursday, the research house said AAX's 9M14 core net loss was way below Affin Hwang's and market estimates.
Affin Hwang Research pointed out AirAsia X reported a larger-than-expected core net loss of RM176mil, taking 9M14 core net loss to RM333mil.
"This was grossly below our and street estimates. The discrepancy against our forecast was mainly due to lower-than-expected average fares as well as higher fuel cost which was US$132/barrel vs our assumption of US$120/barrel," it said.
As part of its business turnaround plan, Affin Hwang said AAX is implementing three main strategies which are capacity management – deferring aircraft delivery and redeploying capacity; raising cash via sale of aircraft and implementing sale and lease back option instead of owning aircraft; and cost cutting through amongst others, some consolidation of backroom office with AirAsia.
http://www.thestar.com.my
