Shared by Koyee
1 - china is negotiating a deal if they can get at least 49% (their limit) instead of current regulation 25% they will announce soon. Apparently the chinese gov like airasia because they fly to places other airlines doesn’t fly.
2 - quite confident Philippines airasia will be the largest airline in Philippines soon and ipo is around the corner.
3 - due to accounting practices 2nd quarter numbers won’t be rosy as well. Although cash flow will be positive as usual. 3rd and 4th Q numbers may recover. Net profit wise.
4 - post dividend, net cash flow will be about 2b ringgit. Cash from aircraft sales will be coming in starting july.
5 - vietnam still looking for a suitable partner.
6 - baggage fees will be adjusted (raised) depending on routes due to competition from “teleport” for belly space.
7 - management continues to put cost cutting as number 1 priority.
8 - bigpay will become a bank (digitally) pending license from bank negara and will be launched in Singapore/thailand/Indonesia (basically asean) by wholly owned subsidiaries/joint venture depending on regulations.
9 - every year target to add 20-30 planes. May continue to lease planes as it is cheaper now (cash wise not accounting wise) until interest rates are down then possibly go back to owning planes.
10 - will post updates on investors they met in US for their digital business.
11 - will open one or two f&b outlets in klang valley (santan and t&co) own a few the rest may be franchised. Nothing significant here.
What else u want to know its one of the longest agm ive been i may missed out some stuff cos i wasnt taking any note.
no free ticket only santan meals as breakfast.
add some more:-
12 - strong hint to remain .12 cents dividend this financial year.
13 - very confident of winning law suit against MAHB and they will fight to the end.
14 - indonesia is growing alot faster in fact they're taking the most planes additions.
hmm...what else....if you have any questions just fire away i may missed some parts busy checking out air stewardess..
I left once the voting session begins cos it will all be passed anyways.
15 - oil price hedged as one of the members mentioned but i would like to add management is bearish on oil for long term..short term volatility is normal due to political tension but in the sense of demand they are bearish on it. new planes are more fuel efficient anyways.
16 - shareholding - foreign holding dropped from 50% to about 30% - whether due to bursa sentiment as a whole or company prospects is up to your judgement. i believe foreign holding in Bursa generally has dropped not only AA.
17 - in terms of Airasia.com revenue outlook. The numbers are 100 million ppl buy tickets from the website a year. So if they manage to sell hotel/activities/ourshop/tuneprotect any of these lets say about rm30-40 revenue and times that to only 10% of the 100million. That's the forecast. This was answered to a question posed by the floor.
i think thats about it and if it matters to you, the management will launch an app for all the employees for them to manage their stress and mental health. it consists of nutritionist / psychiatrist / cheaper insurance premium (if an employee quits smoking etc).
p/s : invest on your own risk.
oh yeah... forgot about share buyback...
well it has and always been that when a company proposes share buy back that doesn't mean that they will actually do it.. it will remain as an open option and whether they will actually buyback shares is another story altogether.... it depends on the board's decision..
and if they do they mentioned that they will buy back shares and then probably delete it. the result of such action is that there are fewer shares floating hence higher earnings per share which translate to higher dividend per share.
now take note. it is a proposal and it has passed and that management now has the authority to buy back shares on the open market but that doesnt mean that they will DEFINITELY do it.. they may not do it after all and re-propose again next year or whenever they deem fit.
ciao~
Philippines as i said they are confident they will become the largest airline there. The local partners have right to raise or reduce their shares I don’t think it matter much as long as they are on the same page strategy and business wise. The shares raised are not from airasia. Air asia will not reduce their shareholding as they intend to be relevant whichever market they are in.
India is the same in regards with shareholding. There are regulations they have to follow. So if they can only hold 49% they will hold 49% whether local partners want to increase or not its up to them. I guess its a good sign that your local partners have faith and buy more shares into the joint venture.
In china they pulled out because they were offered only 25% in the JV. They want to have at least 49%. They are currently negotiating a JV deal of 49% and if it went well there shall be an announcement.
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