MAHB by Hwang-dbs

Malaysia Airports (RM3.53; Buy; Price Target: RM4.50;
MAHB MK)
MAHB revises passenger volume growth forecast
The media reported that MAHB had revised its passenger
growth forecast this year to 3-4% due to the better-thanexpected
increase in tourist arrivals YTD-09. This is higher
than earlier forecast of 0% to -5%.
YTD Aug 09 passenger traffic grew by 6.2% y-o-y, higher
than our forecast of 1% decline for the full year of FY09.
We look to review our traffic volume assumptions. A 1 ppt
increase in FY09 passenger volume growth raises our FY09F-
10F earnings by 1.3%.
Meanwhile, the construction of the new LCCT is believed to
be on track to complete by Sep 2011. The call for tenders to
build the LCCT was launched on the 19th Oct 09 and will
close on the 9th Nov 09.
Maintain Buy with our SOP-derived PT of RM4.50. Our PT
implies 15x CY10F EPS and 1.4x CY10F BV. We believe
MAHB’s recent restructuring enhances long-term earnings
visibility and improves ROE with its increasing benchmark
PSC formula and variable costs mechanism.