Shares of AirAsia X Bhd (AAX) experienced a decline in this morning's trading session after the company recorded a net loss of RM5.67 billion in the quarter ended March 31, 2021.
The company's shares declined 7.14% or half a sen to 6.5 sen, bringing its market capitalization to RM252.78 million.
The counter also saw 15.25 million shares traded.
Shares of its parent company, AirAsia Group Bhd (AirAsia) also declined by 4.19% or 3.5 sen to 80 sen, putting its market capitalization at RM3.05 billion. The counter saw 7.58 million shares traded.
According to PublicInvest Research, all hopes are placed on AAX to successfully restructure its debt with new equity financing from existing and new investors, to provide sufficient capital to start its operations when international borders reopen.
The firm said in its research note that in the 15 months ended March 31, 2021 (15MFY21), AAX's core losses increased by RM7.01 billion from RM1.42 billion for 12MFY21.
PublicInvest Research maintained an ‘underperform’ recommendation with a 12 -month target price of 1 sen.
The firm added that no changes were made to the projections for AAX as the company is still in the process of restructuring its debt to increase new equity financing to provide sufficient capital when it starts operations after the international border reopens.
For 18MFY21, PublicInvest Research projects that AAX will record a net loss of RM1.97 billion while for financial year 2022 (FY22), the firm expects AAX to record a net loss of RM783 million and a net loss of RM673 million in 2023.
From an earnings per share (EPS) perspective, AAX’s cumulative EPS is expected to incur a loss per share (LPS) of 47.5 sen at 18MFY21. For FY22, AAX is projected to record LPS of 17.8 sen and 16.2 sen for FY23.
