KUALA LUMPUR: RHB Research Institute has downgraded AirAsia's FY2010-FY2012 net profit forecasts by 30%-34% to reflect lower yields on a full-scale price war.
'Indicative fair value is cut by 30% from RM3.01 to RM2.10 based on 12x revised FY12/11 EPS, in line with Ryanair. Downgrade to Underperform from outperform,' it said on Tuesday, Nov 9.
RHB Research said'' it foresee a full-scale price war looming on the horizon following MAS's decision to expand its 100%-owned FlyFirefly into a full-fledged low-cost carrier.
'Firefly's fleet of 30 Next Generation 737-800 aircraft by 2015 will give it the firepower to compete head-on with AirAsia's A320 fleet.
'We are downgrading AirAsia's FY10-FY12 net profit forecasts by 30-34% to reflect lower yields on a full-scale price war,' it said.
'Indicative fair value is cut by 30% from RM3.01 to RM2.10 based on 12x revised FY12/11 EPS, in line with Ryanair. Downgrade to Underperform from outperform,' it said on Tuesday, Nov 9.
RHB Research said'' it foresee a full-scale price war looming on the horizon following MAS's decision to expand its 100%-owned FlyFirefly into a full-fledged low-cost carrier.
'Firefly's fleet of 30 Next Generation 737-800 aircraft by 2015 will give it the firepower to compete head-on with AirAsia's A320 fleet.
'We are downgrading AirAsia's FY10-FY12 net profit forecasts by 30-34% to reflect lower yields on a full-scale price war,' it said.
No comments:
Post a Comment