The Star Online: Business

AirAsia soars on dividends, earnings
KLCI edges higher, AirAsia, banks advance
CIMB Research upgrades AriAsia target price to RM3.10

Posted: 26 Feb 2013 05:33 PM PST

Published: Wednesday February 27, 2013 MYT 9:30:00 AM
Updated: Wednesday February 27, 2013 MYT 9:33:23 AM

KUALA LUMPUR: AirAsia's shares were in the limelight early Wednesday after posting a strong set of financial results for the financial year ended Dec 31, 2012, its dividends and more upside for the low-cost carrier.

At 9.17am, it was up 19 sen to RM2.83 with 3.29 million shares done. Its call warrants, AirAsia-CU rose 0.5 sen to one sen.

The FBM KLCI was slightly higher by 0.82 of a point to 1,625. Turnover was 64.34 million shares valued at RM40.56mil. There were 102 gainers, 91 losers and 118 counters unchanged.

CIMB Equities Research has upgraded its target price for AsiaAsia from RM3 to RM3.10 and also its recommendation for the low-cost carrier.

Alliance Research said stripping out exceptional items, AirAsia's FY12 core net profit of RM847.1mil (up 32.5% on-year) came in above its expectations.

The low-cost carrier declared a special dividend of 18 sen and a final dividend of 6 sen, which came as a pleasant surprise.

"Going forward, management commits to pay up to 20% of net operating profits as dividends. Despite near-term hiccups, we remain positive on the fundamentals and growth prospects of AirAsia. Maintain Buy but raise target price to RM3.50 (from RM3.40)," said Alliance Research.

KLCI edges higher, AirAsia, banks advance

Posted: 26 Feb 2013 05:18 PM PST

Published: Wednesday February 27, 2013 MYT 9:18:00 AM

KUALA LUMPUR: Malaysia's blue chips climbed in early trade on Wednesday, as sentiment was boosted by the firmer key regional markets, with AirAsia advancing in active trade.

At 9.04am, the FBM KLCI was up 1.07 points to 1,625.25. Turnover was 35.17 million shares valued at RM17.79mil. There were 76 gainers, 54 losers and 81 counters unchanged.

Consumer stocks were the top gainers, with Dutch Lady up 54 sen to RM43.20 and Carlsberg 24 sen to RM12.94 while BAT gained eight sen to RM58.38.

AirAsia jumped 18 sen to RM2.82 after it was rewarded shareholders with single-tier dividends of 24 sen per share.

RHB Cap and and Hong Leong Bank gained six sen each to RM7.82 and RM14.50.

Star Publications climbed seven sen to RM2.63 after its net profit for the quarter ended Dec 31, 2012 surged over 93% to RM97.10mil.

CIMB Research upgrades AriAsia target price to RM3.10

Posted: 26 Feb 2013 05:07 PM PST

Published: Wednesday February 27, 2013 MYT 9:08:00 AM

KUALA LUMPUR: CIMB Equities Research has upgraded its target price for AsiaAsia from RM3 to RM3.10 and its recommendation for the low-cost carrier.

It said on Wednesday that AirAsia's share price at RM2.64 has adequately reflected the risks of a Malindo entry, having declined 31% from a high of RM3.82 last July.

Malindo secured its Air Operator's Certificate on Tuesday, and plans to start operations by end-March 2013.

"Our forecasts have already incorporated a 3% underlying yield deterioration for 2013 (reduced from a 6% decline previously, due to a likely slower-than-expected ramp-up for Malindo), followed by another 6% underlying yield decline in 2014," it said.

CIMB Research said as a result, it expects Malaysia AirAsia's (MAA) core net profit to experience on-year declines from 2014 onwards, until the moment arrives when Lion Air decides to call off the Malindo venture in view of what it expects to be relatively large losses.

"Hence, we emphasise that our target price for AirAsia has already taken into consideration these yield decline expectations," it said.

The research house said AirAsia's 4Q12 core net profit was 23% above its forecast, due to 9% higher earnings at MAA on lower-than-expected interest expense, and stronger-than-expected performance of IAA.

"As a result, the full-year 2012 core group earnings were 9% above forecast," it said.

Kredit: www.thestar.com.my

Selasa, 26 Februari 2013