KUALA LUMPUR: OSK Research is maintaining its Sell call on MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) on the possibility of a picket and in worse case, a strike, which will further dent earnings.
It said on Monday, Oct 3 it had a lower fair value of RM1.15 premised at 1.8 times price to FY12 NTA per share (previously 2.0 times P/NTA).
'MAS traded at trough valuations of 1.3 times P/NTA back during the global financial crisis.
'For exposure to the aviation sector, we prefer AirAsia and MAHB (BUY, FV RM7.36), with both benefiting on sustainable demand for low cost travel coupled by the lower jet fuel price being positive on earnings for the former,' it said.
To recap, news reports said MAS workers have given their bosses two months to cancel the share swap deal or face protests in December. All eight workers' unionised groups want MAS to buy back the shares that have been sold to AirAsia while returning those bought from the low-cost carrier.
It said on Monday, Oct 3 it had a lower fair value of RM1.15 premised at 1.8 times price to FY12 NTA per share (previously 2.0 times P/NTA).
'MAS traded at trough valuations of 1.3 times P/NTA back during the global financial crisis.
'For exposure to the aviation sector, we prefer AirAsia and MAHB (BUY, FV RM7.36), with both benefiting on sustainable demand for low cost travel coupled by the lower jet fuel price being positive on earnings for the former,' it said.
To recap, news reports said MAS workers have given their bosses two months to cancel the share swap deal or face protests in December. All eight workers' unionised groups want MAS to buy back the shares that have been sold to AirAsia while returning those bought from the low-cost carrier.
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