MAHB likely to reach full passenger traffic recovery by 2H this year
Malaysia Airports Holdings Bhd (MAHB) will likely reach its target of achieving full passenger traffic recovery by the second half of 2024 (2H24), analysts oberved.
In a report, the research team at MIDF Amanah Investment Bank Bhd (MIDF Research) highlighted: “Daily international passenger volumes in February 2024 have reportedly surpassed those in December 2023, marking an encouraging trend.
“There is ample opportunity for expansion, particularly in the non-Asean sector, thanks to the reciprocal visa-free entry agreement. MAHB has set a target of welcoming 17 new carriers this year to operate from local airports, with five already secured.
“As of February 2024, the number of airlines operating in Malaysia stands at 68, nearly reaching the pre-pandemic level of 69 airlines.”
Meanwhile, on the airport operator’s performance in FY23, MIDF Research pointed out that with a core profit after tax (PAT) of RM163.6 million in 4QFY23, totalling RM470.2 million for FY23, MAHB has recorded its first profitable year since the Covid-19 lockdown.
In 4QFY23, MAHB posted a fourth consecutive core PAT of RM163.6 million (100 per cent y-oy), a turnaround from the loss in 4QFY22.
“Against 2019 levels, Malaysia’s passenger numbers recovered to 78 per cent, while Istanbul SGIA witnessed a notable 12 per cent growth, fueled by its robust international traffic. MAHB’s commercial and retail initiatives have led to an operational occupancy rate of 81 per cent in FY23, with plans to surpass 85 per cent by June 2024.
“An increase in spending per ticket to RM312 from RM233 in FY19 reflects the impact of enhanced product offerings. Sequentially, earnings rose by 21.8 per cent q-o-q, partly driven by improved contributions from its JVs and associates, along with a higher tax credit,” it said.
All in, MIDF Research maintained its ‘neutral’ view on the stock. It noted that key catalysts include faster-thanexpected recovery of the nonAsean sector, and local airlines rebuilding their fleet.