HLIB Maintains 'Buy' Call On MAHB

KUALA LUMPUR, Oct 13 (Bernama) -- Hong Leong Investment Bank Research (HLIB) has maintained its "buy" call on Malaysia Airports Holdings Bhd (MAHB) shares at a target price of US$1.62 (RM6.79). In a note Tuesday, HLIB said the China sector had continued to show improvements since May, with an average growth of +18.8 per cent year-on-year. "Similarly, the Middle East has also reported positive growth, while Europe has been affected by the MAS restructuring," the research house said. However, it noted that the Malaysian operation was affected by the MAS capacity rationalisation, ringgit depreciation (less travels by locals) as well as haze situation (affecting travel, especially within the Peninsular). Despite that, KLIA2 continued to record strong growth at +15.2 per cent, driven by LCC operations by AirAsia Group (including AirAsia X) and Malindo. Meanwhile, in a separate note, Alliance DBS Research made a "hold" call on MAHB with a reduced target price of RM5.40. Alliance DBS Research said it is reducing its passenger traffic forecast for Malaysia in financial year (FY 2016-2017) by three per cent. "We now expect Malaysian traffic to grow by only one per cent in FY16, and five per cent per annum, thereafter. "However, MAHB is on track to hit its three per cent Malaysian passenger growth target in FY15, but this will be driven by the low-yielding non-KLIA and domestic segments," it added. As of 12 pm, MAHB shares garnered 27 sen to RM5.65, with 1,333,300 changing hands. (US$1 = RM4.19) --BERNAMA