Midf revises mahb target price, upgrade to "buy"

KUALA LUMPUR, Feb 17 (Bernama) -- MIDF Research has upgraded Malaysia Airports Holdings Bhd to a "buy" with a higher target price of RM7.20 from RM5.95 previously, reflecting its future potential. (US$1=RM3.05)

It said the expected total returns based on the revised target price was more than 15 per cent.

MIDF (Malaysian Industrial Development Finance Berhad) said MAHB's
operations remained strong and stable and it was expected to strengthen further after the completion of the new low cost carrier terminal, KLIA 2.

"We expect MAHB will continue to be impacted by the losses in associate companies in FY11. However, we believe the impact will lessen," it said in a research note Thursday.

Meanwhile, OSK Research in its research note, said it slighthly raised the target price for MAHB to RM8.60, from RM8.47 previously, and maintained its "buy" call.

"We continue to like MAHB given its nature as a defensive aviation play as travel demand remains buoyant on the back of the capacity expansion by air carriers over the immediate to medium-term.

"Boosted by the commercial segment, we nudge up our earnings for FY11 and FY12 by between 2.7 and 6.9 per cent," it said.

MAHB on Wednesday reported a pre-tax profit of RM444.973 million for the year ended Dec 31, 2010, down 7.32 per cent from RM480.098 million recorded in 2009.

The profit was achieved over a 10.7 per cent increase in revenue of
RM1.812 billion against RM1.637 billion registered previously.

Net profit declined 22.2 per cent to RM293.9 million due to higher losses in an associate company.