MAS will take delivery of 5 A330-300s this year and 10 more from FY12-FY15. We are impressed with the carrier’s well-appointed and spanking new A330-300 cabin, which boasts of the best in in-flight entertainment and comfort. This may just be the game changer for MAS. Its younger fleet is anticipated to be MAS’ key earnings kicker for a turnaround on better fuel burn, lower maintenance costs, and more reliability and flying hours vs its older aircraft. Nonetheless, our higher revised oil price assumption prompts us to downgrade its earnings by 18% for FY11-FY12, which accordingly entails a downgrade to SELL at a lower FV of RM1.60, premised on 8.5x EV/EBITDA. Our previous call was NEUTRAL at a FV of RM1.76.
No comments:
Post a Comment