Stocks In Focus MY AAX (5238) : AirAsia X , GASMSIA (5209) : Gas M’sia, MAHSING (8583) : Mah Sing – 13/11/14
New Routes Expected To Hurt AirAisa X Earnings
AirAsia X, is expected to record a core net loss of RM73 million in 3Q14 compared with a modest RM16 million profit in the same period last year, due to lower yields, a weak market and impact of new routes, according to Maybank Investment Bank.
The research house stated that the second half of the year has been a seasonally strong period for AirAsia X, where the airline historically derived all of its annual profits from. However, 2H14 conditions have been challenging and published fares suggest continued weak yields amidst a fare war.
Yield environment for the long-haul segment remains distinctively weak and it coincides at a time when AirAsia X is taking a record number of new aircraft deliveries and launching many routes. Weakening of ringgit against the US dollar may also result in record forex translation losses in 4Q14.
Significance: The research house notes that AirAsia X is set to receive eight new aircrafts next year and maintains its ‘Sell’ call on AirAsia X, with a target price of RM0.62 as it tweaked the airline’s earnings forecast.
Gas Malaysia 3Q14 Net Profit Jumps 17%
For the third quarter ended 30 September, Gas Malaysia recorded a 16.5 percent increase in net profit to RM53.8 million, due to higher gas sales and the upward revision of natural gas tariff, as revenue expanded 25.8 percent to RM734.4 million.
Similarly, top and bottom lines for the nine-month period grew 16.3 percent and 9.9 percent to RM2 billion and RM144.3 million respectively.
Going forward, the group anticipates the increase in gas volume and number of customers to sustain in the remaining quarter of the current financial year.
Significance: In a separate report, CIMB Equities Research noted that the firm’s performance has been in line with expectations, maintaining its ‘Add’ rating on the group with an unchanged target price of RM3.95.
Mah Sing To Focus On Mass Market Developments
Mah Sing Group, one of Malaysia’s top property developers, is focusing on launching more mid-range or affordable residential properties that are priced below RM1 million, in the next three years.
The plan is in line with the government’s aim to encourage home ownership, especially among the middle-income earners.
The group shared that it has been accumulating land in the past two years to develop townships to focus on the mass-market.
Significance: The launch of more affordable homes would provide opportunity for first-time buyers and the firm noted that 97 percent of its residential property launches are priced below RM1 million this year and next year the figure will be over 84 percent.
http://www.sharesinv.com
New Routes Expected To Hurt AirAisa X Earnings
AirAsia X, is expected to record a core net loss of RM73 million in 3Q14 compared with a modest RM16 million profit in the same period last year, due to lower yields, a weak market and impact of new routes, according to Maybank Investment Bank.
The research house stated that the second half of the year has been a seasonally strong period for AirAsia X, where the airline historically derived all of its annual profits from. However, 2H14 conditions have been challenging and published fares suggest continued weak yields amidst a fare war.
Yield environment for the long-haul segment remains distinctively weak and it coincides at a time when AirAsia X is taking a record number of new aircraft deliveries and launching many routes. Weakening of ringgit against the US dollar may also result in record forex translation losses in 4Q14.
Significance: The research house notes that AirAsia X is set to receive eight new aircrafts next year and maintains its ‘Sell’ call on AirAsia X, with a target price of RM0.62 as it tweaked the airline’s earnings forecast.
Gas Malaysia 3Q14 Net Profit Jumps 17%
For the third quarter ended 30 September, Gas Malaysia recorded a 16.5 percent increase in net profit to RM53.8 million, due to higher gas sales and the upward revision of natural gas tariff, as revenue expanded 25.8 percent to RM734.4 million.
Similarly, top and bottom lines for the nine-month period grew 16.3 percent and 9.9 percent to RM2 billion and RM144.3 million respectively.
Going forward, the group anticipates the increase in gas volume and number of customers to sustain in the remaining quarter of the current financial year.
Significance: In a separate report, CIMB Equities Research noted that the firm’s performance has been in line with expectations, maintaining its ‘Add’ rating on the group with an unchanged target price of RM3.95.
Mah Sing To Focus On Mass Market Developments
Mah Sing Group, one of Malaysia’s top property developers, is focusing on launching more mid-range or affordable residential properties that are priced below RM1 million, in the next three years.
The plan is in line with the government’s aim to encourage home ownership, especially among the middle-income earners.
The group shared that it has been accumulating land in the past two years to develop townships to focus on the mass-market.
Significance: The launch of more affordable homes would provide opportunity for first-time buyers and the firm noted that 97 percent of its residential property launches are priced below RM1 million this year and next year the figure will be over 84 percent.
http://www.sharesinv.com
