[%iUbd%]
Research by Maybank
BUY – TP RM 2.71

"Creating slipstreams to a better 2H24”

Given that 2Q tends to be weak for AAX, we believe it fared well in 2Q24. We expect 3Q24 and 4Q24 to be better on lower fuel prices, recovering MYR and seasonally high fares. We lift earnings estimates by 61-88%. Ascribing 6x FY25E PER (7x FY25E PER previously based on industry average ex-Interglobe, Spring and VietJet), we lift our TP to MYR2.71 from MYR1.88. Efforts to raise MYR1.0b in equity are underway. AAX also expects to complete the acquisition of CAPITALA’s 5 airlines by year end. 

Analyst:
Yin Shao Yang
[%advg%]

$KLSE-AAX
Research by Maybank
BUY – TP RM 2.71

"Creating slipstreams to a better 2H24”

Given that 2Q tends to be weak for AAX, we believe it fared well in 2Q24. We expect 3Q24 and 4Q24 to be better on lower fuel prices, recovering MYR and seasonally high fares. We lift earnings estimates by 61-88%. Ascribing 6x FY25E PER (7x FY25E PER previously based on industry average ex-Interglobe, Spring and VietJet), we lift our TP to MYR2.71 from MYR1.88. Efforts to raise MYR1.0b in equity are underway. AAX also expects to complete the acquisition of CAPITALA’s 5 airlines by year end. 

Analyst:
Yin Shao Yang
samuel.y@maybank-ib.com