AAX to bounce back with strong Q4 results, says Maybank IB
Published on: Wednesday, November 22, 2023
By: FMT Business
AirAsia X Bhd’s revenue for Q3 FY2023 surged by almost six times higher to RM648.36 million, from RM100.10 million a year ago. (Bernama pic)
PETALING JAYA: Even with unsatisfactory financial results for the third quarter ended September 30, 2023 (Q3 FY2023), Maybank Investment Bank Bhd (Maybank IB) had expressed confidence in the potential for AirAsia X Bhd (AAX) to demonstrate strong performance in the fourth quarter of 2023 (Q4 2023).
In a note today, Maybank IB maintained its “buy” call on AAX with a lower 12-month target price of RM3.40 (previously RM3.56).
ADVERTISEMENT
Maybank IB said despite the disappointing Q3 FY2023 financial results due to higher-than-expected jet fuel prices, AAX is expected to perform strongly in Q4 2023.
“Going forward, we expect Q4 FY2023 to be strong as fares traditionally peak in the fourth quarter.
“We expect Thai AirAsia X (TAAX) to contribute meaningfully from next year onwards,” Maybank IB said.
In terms of associate’s performance, TAAX reported overall revenue of RM287.2 million, over 10 times higher than the same period last year, with a recovery of close to 79% against the 2019 level.
ADVERTISEMENT
This quarter, following its successful rehabilitation plan, TAAX posted a net profit of RM752.1 million.
In addition, AAX shares were actively traded this morning after Bursa Malaysia Securities Bhd uplifted the airline’s Practice Note 17 (PN17) status effective today following an appeal.
ADVERTISEMENT
AAX said that Bursa Securities had noted that the airline had complied with the criteria for waiver and upliftment from being classified as a PN17 company.
This comes after the medium-haul low-cost carrier reported a net profit of RM5.56m for the Q3 FY2023, down 77.83% compared with RM25.09 million posted for the same period last year due to higher aircraft fuel expenses and maintenance and overhaul costs.
Nevertheless, AAX said its revenue for Q3 FY2023 surged by almost six times higher to RM648.36 million, from RM100.10 million a year ago.
The revenue surge was attributed to the recovery of international travel and the group’s return to operational normalcy over the past 12 months.
As at 12.29pm, AAX’s share price was up by 13 sen or 6.19% at RM2.23, giving it a market capitalisation of RM996.97 million.
Year-to-date, AAX’s share price has risen 272% from 60 sen on Jan 3.
Stay up-to-date by following Daily Express’s Telegram channel.
Daily Express Malaysia
