__Company Info__Market Capital (Capital Size) | 7,139,000,000 (Very Large) |

Par Value | RM 1.00 |

__My Analysis__Forecast P/E now | (6.49-0.1975)/0.298 = 21.12 (High) |

Target Price | 4.77+0.1975 = 4.97 (PE 16.0, EPS 0.298, DPS 0.1975) |

Decision | Not interested unless profit increase more |

Comment | Revenue increased 7.2% and is fourth consecutive quarter increasing (higher than preceding year corresponding quarter 24.6%), eps decreased 7% and is second consecutive quarter decreasing but still higher than preceding year corresponding quarter 37.5%, cash generated from operating enough for financing expenses but not for investing expenses, weaker liquidity ratio but still at high level now, higher gearing ratio at high level now, receivables and payables ratio also slightly high, KLIA2 target completed by April 2012 |

First Support Price | 6.5 |

Second Support Price | 6.35 |

Risk Rating | MODERATE |

__Research House__HLG Target Price | 6.58 (2010-12-28) |

Macquarie Target Price | 7.5 (2011-01-14) |

OSK Target Price | 8.47 (2011-02-11) |

TA Target Price | 6.6 (2011-02-17) |

RHB Target Price | 7.67 (2011-03-07) |

Kenanga Target Price | 6.64 (2011-04-11) |

HwangDBS Target Price | 7.6 (2011-04-15) |

MIDF Target Price | 7.2 (2011-06-01) |

Maybank Target Price | 7.55 (2011-07-26) |

__Accounting Ratio__Return on Equity | 9.88% |

Dividend Yield | 3.04% |

Profit Margin | 20.50% |

Tax Rate | 39.01% |

Asset Turnover | 0.3137 |

Net Asset Value Per Share | 3.08 |

Net Tangible Asset per share | -0.48 |

Price/Net Tangible Asset Per Share | -13.52 |

Cash Per Share | 1.0 |

Liquidity Current Ratio | 3.3331 |

Liquidity Quick Ratio | 3.2198 |

Liquidity Cash Ratio | 1.8193 |

Gearing Debt to Equity Ratio | 1.0747 |

Gearing Debt to Asset Ratio | 0.5176 |

Working capital per thousand Ringgit sale | 63.8% |

Days to sell the inventory | 27 |

Days to collect the receivables | 140 |

Days to pay the payables | 200 |

__My notes based on 2011 quarter 2 report (number in '000):-__- The improved revenue was mainly attributed to the effects of adopting IC 12 which resulted in recognition of construction revenue in relation to the construction of Klia2 and expansion of Penang International Airport in the current quarter of RM182.0 million

- Stripping out the construction revenue, the consolidated revenue for the current quarter under review was higher than the same corresponding period in the previous year by 8.4% or RM36.4 million

- The improvement in revenue for current quarter under review was mainly contributed by a positive growth of 7.3% from airport operations, driven by an increase in non-aeronautical revenue of 14.9% which was mostly derived from the Group’s retail business

- Passenger movements for the current quarter under review were 6.8% higher than the corresponding period last year, in which the international and domestic passenger movements increased by 2.6%

- The Group’s airport operations revenue was, however, impacted by airline incentives accrued in financial period-to-date of RM60.0 million which will be given out to airlines in the current financial year, as compared to RM10.0 million incurred in the corresponding period in the previous year. The airline incentives were granted to eligible airlines under the Airlines Recovery Program (“ARP”) announced on 18 November 2009 and effective for a period of three years ending 31 December 2011

- Despite the lower total crop harvested as a result of the 1,721 hectares of land surrendered for the construction of Klia2, revenue from the agriculture segment increased due to the higher fresh fruit bunch price which had increased by RM258 per MT ( 2011: 39,316MT / RM751, 2010:42,136MT/ RM493 )

- Hotel revenue grew 12.0% or RM3.6 million due to higher revenue from food and beverage related services and rooms occupancy rate

- The favourable PBT variance was attributed to the positive growth in revenue. The adoption of IC 12 has no impact to the PBT in the current quarter and financial period-to-date under review as no mark-up was applied to the construction cost incurred in deriving the construction revenue

recognized

- In addition, the improvement in PBT was also as a result of lower interest on borrowings due to the settlement of short term borrowings at the end of 2010

- The favourable variance was also contributed by lower share of associate losses, as well as the MAHB Group’s cost saving initiatives resulting in lower utilities, repair maintenance and administrative expenses

- Estimate next 4Q eps after 2011 Q2 result announced = 0.0745*4 = 0.298, estimate PE on current price 6.49 = 21.12(DPS 0.1975)

- Estimate next 4Q eps after 2011 Q1 result announced = 0.0801*4*1.1 = 0.3524, estimate highest/lowest PE = 18.57/17.26 (DPS 0.1975)

- Estimate next 4Q eps after 2010 Q4 result announced = 0.0764*4*1.1 = 0.3362(deduct 16 million other income for adjustment), estimate highest/lowest PE = 20.64/17.31 (DPS 0.1975)

- Estimate next 4Q eps after 2010 Q3 result announced = 0.06*4*1.1 = 0.264(associates increasing loss), estimate highest/lowest PE = 23.49/21.41 (DPS 0.149)

- Estimate next 4Q eps after 2010 Q2 result announced = 0.3233*0.95 = 0.3071, estimate highest/lowest PE = 19.12/16.55 (DPS 0.229)

- Estimate next 4Q eps after 2010 Q1 result announced = 0.3429*0.9 = 0.3086 (10% drop from 0.3429), estimate highest/lowest PE = 17.24/14.81 (DPS 0.229)

- Estimate next 4Q eps after 2009 Q4 result announced = 0.086*4 = 0.344, estimate highest/lowest PE = 13.97/12.89 (DPS 0.233)

- Estimate next 4Q eps after 2009 Q3 result announced = 0.0758*4 = 0.3032, estimate highest/lowest PE = 15.72/11.36 (DPS 0.233)

- Estimate next 4Q eps after 2009 Q2 result announced = 0.068*4 = 0.272, estimate highest/lowest PE = 13.18/11.6 (DPS 0.1855)

- Estimate next 4Q eps after 2009 Q1 result announced = 0.0695*4 = 0.278, estimate highest/lowest PE = 13.07/10.27 (DPS 0.1855)

- Estimate next 4Q eps after 2008 Q4 result announced = 0.069*4 = 0.276, estimate highest/lowest PE = 12.37/7.63 (DPS 0.1855)

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