Aviation
Research by Kenanga 
Neutral 

 [%WsJd%] [%CKgR%] 

“Corporate Exercises Upstage Air Travel Recovery”

We maintain our NEUTRAL view on the sector. We project tourist arrivals of 27m in CY24, up 35% from 20m in CY23 and surpassing 26.1m in CY19 before the pandemic, backed by higher demand for both business and leisure air travel. The number is consistent with Tourism Malaysia’s target of 27.3m. This will translate to a sustained recovery in passenger throughput at AIRPORT and passengers carried at CAPITALA. For AIRPORT, the poser is if the proposed privatisation by a consortium at RM11.00/share will be accepted by its minority shareholders. Meanwhile, while CAPITALA has been able to fill up seats in its planes, there is room to boost yields to ensure profitability after accounting for depreciation, aircraft leasing charges and finance cost. We do not have any pick for the sector.

Analyst:
Raymond Choo Ping Khoon 
[%TdiD%]

Aviation
Research by Kenanga 
Neutral 

 $KLSE-AIRPORT $KLSE-AIRASIA 

“Corporate Exercises Upstage Air Travel Recovery”

We maintain our NEUTRAL view on the sector. We project tourist arrivals of 27m in CY24, up 35% from 20m in CY23 and surpassing 26.1m in CY19 before the pandemic, backed by higher demand for both business and leisure air travel. The number is consistent with Tourism Malaysia’s target of 27.3m. This will translate to a sustained recovery in passenger throughput at AIRPORT and passengers carried at CAPITALA. For AIRPORT, the poser is if the proposed privatisation by a consortium at RM11.00/share will be accepted by its minority shareholders. Meanwhile, while CAPITALA has been able to fill up seats in its planes, there is room to boost yields to ensure profitability after accounting for depreciation, aircraft leasing charges and finance cost. We do not have any pick for the sector.

Analyst:
Raymond Choo Ping Khoon 
pkchoo@kenanga.com.my

$AIRPORT / 5014 (MALAYSIA AIRPORTS HOLDINGS BERHAD)