Friday, June 15, 2012
There's Something About MAS
Ahmad Maghfur Usman, analyst at OSK Research talks about
- expected turnaround in sentiment for MAS in reaction to RM2.5b sukuk announcement.
- risks attached to Islamic perpetual bond. Thai SEC and MAS have both expressed concern over this type of instrument. MAS is the world’s first corporation to issue an Islamic perpetual bond.
- KWAP taking up RM1b of the sukuk program - how this is good for tax paying citizens.
- the odds are stacked against MAS: a substantial workforce with strong unions, a saturated full-service segment and Malaysia playing 2nd fiddle to Singapore as a business travelers’ hub - how to overcome?
- his sole BUY call, in a sky filled with sells even though he expects MAS to only be profitable by FY14. Basis for his contrarian optimism.