Thursday, June 14, 2012

Malaysian Airline System - Thrown a lifeline

Malaysian Airline System
Price Target : 1.25
Last Price : 1.15

- According to local dailies this morning, Malaysia Airlines (MAS) has found a taker for RM1bil worth of Sukuk. The RM1bil tranche was issued to KWAP (Kumpulan Wang Persaraan) yesterday. The Sukuk will be utilised as working capital and refinancing of existing borrowings.

- It is also said that MAS has obtained firm commitments for the remaining RM1.5bil tranche of the total RM2.5bil Sukuk programme, 'where the takers will be announced in due course'. The Sukuk carries a profit rate of 6.9% per annum for the first 10 years, and balloons thereafter.

- To recap, the RM2.5bil Sukuk is a hybrid capital structure with a perpetual life which will be recognised as equity in MAS' books. This will improve gearing and allows for recapitalisation with no share dilution, though earnings will be diluted by profits payable on the Sukuk of circa RM70mil/annum ' this has been earlier factored in, partially, as interest on aircraft funding in our projections.

- The Sukuk underpins MAS' financial restructuring, which also involves: (1) A RM5.3bil finance lease aircraft funding via an SPV to be owned by MoF ' specifically for six new A380s and two A330 deliveries; (2) Commercial funding for remaining aircraft deliveries.

- MAS also received a RM1bil capex bridging loan from a consortium of commercial banks to fund deliveries of two aircraft in May 2012, which will be repaid by aircraft proceeds from the proposed SPV funding, expected to be secured sometime in July 2012.

- We maintain our HOLD rating on MAS with an unchanged fair value of RM1.25/share. While we are positive on these developments and acknowledge it is a MAS-specific re-rating catalyst, we believe MAS needs to show a more consistent profit track record before meaningful interest by investors can be restored ' this is not the first time MAS has successfully undergone a recapitalisation.

- Furthermore, a weakening core operating environment suggests increasing earnings risk and deteriorating valuations. We believe share price may react positively to this news today, but the fundamental outlook is still not constructive enough to call a bona fide Buy.

Source: AmeSecurities

Source/Extract/Excerpts/来源/转贴/摘录: http://klse.i3investor.com
Publish date: 13/06/12

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock