MAS falls 6% on 3Q loss (the edge,19/11/13) Malaysian Airline System Bhd (MAS) fell 6% after the national airline reported third quarter losses. This has resulted in downgrades by analysts. At 10.02am, MAS fell two sen to 32.5 sen. The second most-active counter saw heavy trades of some 63 million shares.Year to date, MAS has fallen 3%. This is in comparison to the FBM KLCI which has gained 7%. MAS said yesterday net loss came to RM357.44 million in the third quarter ended September 30, 2013 (3QFY13). This compares to a net profit of RM37.08 million a year earlier. Revenue however rose to RM3.91 billion from RM3.47 billion. Cumulative nine-month (9MFY13) net loss widened to RM830.25 million from a net loss of RM483.96 million a year earlier. Revenue was higher at RM11.22 billion compared to RM9.89 billion. HwangDBS Vickers Research Sdn Bhd research head Wong Ming Tek said MAS made a larger loss than expected. Excluding foreign exchange loss and derivatives fair value gain, MAS posted a 3QFY13 RM294 million core net loss, Wong said. This results in 9MFY13 core net loss of RM669 million compared to RM572 million previously. We downgraded our FY13 and FY14 net loss forecasts to RM758m (from RM268m) and RM212m (from RM59m net profit) after factoring in lower yields and trimmed TP to RM0.28 pegged to 1.1x BV, the lower end of its historical valuation range. Maintaining profitability remains a challenge in this tough operating environment, Wong wrote in a note today. HwangDBS Vickers has maintained its fully-valued call for MAS. Meanwhile, Kenanga Investment Bank Bhd wrote in a note today that MAS shares immediate technical support and resistance are seen at 35 sen.
Posted on: Tue, 19 Nov 2013 03:52:36 +0000
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