MAHB SHARE PRICE TO RECOVER ON VACCINE ROLLOUTS, SAYS CGS-CIMB
KUALA LUMPUR, Jan 20 -- CGS-CIMB Securities Sdn Bhd expects Malaysia Airports Holdings Bhd’s (MAHB) share price to recover in view of the 2021 forecast on improved passenger traffic as vaccine rollouts make progress.
“Our financial year 2021 forecasts assume that Malaysia’s pax traffic will recover to 47 per cent of the 2019 base, from 24 per cent in 2020, and Istanbul Sabiha Gokcen International Airport’s pax traffic will recover to 83 per cent of the 2019 base, from 48 per cent in 2020, premised on the rollout of COVID-19 vaccines.
“About 10 per cent of Turkey’s population has already been vaccinated since Jan 13, while Malaysia targets to vaccinate 80 per cent of its population by the first quarter of 2022, although some observers think this is too optimistic,” the research firm said in a note today.
CGS-CIMB also said the signing of the new operating agreement in Malaysia, following positive outcomes in Turkey on debt and concession fee payments, would be additional positives to the forecast.
It expects MAHB’s fourth quarter 2020 results, to be released on Feb 26, would be in line with expectations of a RM498 million core net loss versus a nine-month 2020 core net loss of RM377 million.
The research firm has reiterated its ‘Add’ recommendation on MAHB with an unchanged target price of RM5.97 per share.
MAHB’s share price on Bursa Malaysia closed four sen lower at RM5.51 today on a volume of 1.57 million shares being transacted.
-- BERNAMA
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