KUALA LUMPUR: Research firms anticipate that a continued resurgence in both domestic and international tourism numbers will benefit Malaysia Airports Holdings Bhd (MAHB) towards year-end despite recent turbulence in the aviation industry.
RHB Investment Bank Bhd (RHB IB) expects a stronger recovery for Malaysia in the fourth quarter of this year (4Q 2023), in line with Malaysia and Turkiye's nine-month period of this year's passenger traffic that accounted for 65.6 per cent and 73.5 per cent of financial year 2023 (FY2023) estimates, respectively.
"We retain our view that the Malaysian segment is poised for a robust 4Q 2023 tourism recovery, driven by airline service resumptions, the school holidays peak travel season, and a stronger resurgence in outbound Chinese tourism," it said in a note today (October 23).
As such, RHB IB made no changes to its earnings estimates for MAHB and the target share price (TP) of RM8.70.
Despite the recent turbulence in the industry, the research house believed the impact on airport operators was minimal, reaffirming its positive stance on MAHB.
Meanwhile, Kenanga Research also expects the passenger traffic trajectory to rise in subsequent months, as airlines continue to re-activate more aircrafts to match the increasing demand.
Hence, it has maintained its earnings forecasts and TP of RM7.0 for MAHB.
"We like MAHB for being the dominant airport operator in Malaysia and one of the largest in Türkiye; good proxy to the recovery of air travel and tourism locally, regionally and globally; as well as its strong shareholders who have demonstrated unwavering support through thick and thin," it said.
However, it said the recent proposal to peg airport tariffs to the Consumer Price Index (CPI) could work against MAHB's ability to generate enough cash flow for capital expenditures purposes, particularly for airport expansion and maintenance.
At 12.10pm, MAHB's share price increased two sen to RM7.26 with 481,600 shares changing hands. – BERNAMA
