CGS-CIMB Securities Sdn Bhd reiterated the 'add' recommendation on Malaysia Airports Holdings Bhd (MAHB) with an unchanged target price of RM5.97 per share after the firm expects MAHB share price to recover following the 2021 projected improved passenger traffic and vaccine launch which is increasingly showing progress.
“Our projected financial year 2021 assumes that Malaysian passenger traffic will recover to 47% on a 2019 basis from 24% in 2020, and Istanbul Sabiha Gokcen International Airport passenger traffic will recover to 83% from 48% in 2020, and this is based on the launch Covid-19 vaccine.
"About 10% of Turkey's population has been vaccinated since January 13, while Malaysia aims to vaccinate 80% of its population by the first quarter of 2022, although some observers think this is too optimistic," the research firm said in a research note yesterday.
According to CGS-CIMB as quoted by Bernama as saying, the signing of a new operating agreement in Malaysia following positive results in Turkey on debt payments and concession fees, will be an additional indicator for the projection.
The results of the fourth quarter of 2020 MAHB are expected to be announced on 26 February.
Following the Covid-19 pandemic. national borders had to be closed and aircraft unable to move causing the aviation industry to be severely affected and full recovery is expected to occur only in 2023.
