KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) is projected to maintain strong passenger traffic growth in 2024-2025, driven by increasing demand from key markets like China, India, and Southeast Asia. Analysts highlight several factors contributing to this trend:
- Relaxed visa policies: China’s extension of visa-free entry for Malaysians until the end of 2025 and Malaysia’s reciprocal policy for Chinese tourists until the end of 2026.
- New airlines and routes: The introduction of additional carriers and flight routes is expected to boost traffic across MAHB’s network.
The Airports Council International forecasts a 13% year-on-year growth in Asia-Pacific air travel demand in 2024, fueled by recoveries in China and India. The Malaysian Aviation Commission has refined its 2024 passenger traffic forecast to a range of 95.4-97.6 million passengers, compared to an earlier estimate of 93.9-107.1 million.
Financial Performance
CIMB Securities noted that MAHB’s third-quarter results (3Q FY2024) ending September 30, 2024, aligned with expectations. MAHB reported:
- Net profit: RM210.37 million, a sharp increase from RM94.76 million a year earlier.
- Revenue: RM1.53 billion, up from RM1.28 billion.
Analysts’ Recommendations
CIMB Securities maintained a “Hold” rating on MAHB with an unchanged target price (TP) of RM11, consistent with the privatisation offer price. The firm cited long-haul connectivity challenges and capital requirements for infrastructure upgrades as potential risks to organic growth. It recommended investors accept the offer, highlighting immediate returns and sustainable growth opportunities from the joint offerors’ resources.
MIDF Amanah Investment Bank Bhd echoed this view, recommending acceptance of the RM11 buyout offer, which reflects an 18% premium over fair value.
Market Activity
As of 11:15 am, MAHB’s share price rose by four sen to RM10.60, with 73,200 units traded. Analysts remain optimistic about the group’s growth trajectory, supported by a robust recovery in air travel demand and strategic policy measures.
