MAHB On Route To Surpassing Pre Pandemic Levels

Malaysia Airports Holdings Berhad reported a core PAT of RM163.6m in 4QFY23, totalling RM470.2m for FY23. MIDF said the earnings met its expectation but exceeds consensus, accounting for 105%/122% of its/consensus full-year estimates. The group had also declared a final dividend of 10.8 sen per share, constituting a payout ratio of 37%.

In 4QFY23, MAHB posted a fourth consecutive core PAT of RM163.6m, a turnaround from the loss in 4QFY22. Against 2019 levels, Malaysia’s passenger numbers recovered to 78%, while Istanbul SGIA witnessed a notable +12.0% growth, fueled by its robust international traffic. MAHB’s commercial and retail initiatives have led to an operational occupancy rate of 81% in FY23, with plans to surpass 85% by Jun-24. An increase in spending per ticket to RM312 from RM233 in FY19 reflects the impact of enhanced product offerings. Sequentially, earnings rose by +21.8%qoq, partly driven by improved contributions from its JVs and associates, along with a higher tax credit.

The group remains optimistic about achieving full passenger traffic recovery this year, which the house anticipates will likely materialise in 2HCY24. Daily international passenger volumes in Feb-24 have reportedly surpassed those in Dec-23, marking an encouraging trend. There is ample opportunity for expansion, particularly in the non-ASEAN sector, thanks to the reciprocal visa-free entry agreement. MAHB has set a target of welcoming 17 new carriers this year to operate from local airports, with 5 already secured. As of Feb-24, the number of airlines operating in Malaysia stands at 68, nearly reaching the pre-pandemic level of 69 airlines.

MIDF maintains a NEUTRAL call on the stock with earnings estimates remaining largely unchanged after updating the full-year figures. The house noted that the stock is trading close to its pre-pandemic mean. Key catalysts include faster-than-expected recovery of the non-ASEAN sector, and local airlines rebuilding their fleet.

Previous articleLI Rebound Signals Positive Growth Momentum Albeit Ringgit Pulling At Economic Heartstrings
Next articleSingapore’s Air Force To Add More Stealth Fighters As It Phases Out Older Jets


Please enter your comment!
Please enter your name here