KUALA LUMPUR, Feb 13 – OSK Research Sdn Bhd expect AirAsia’s fourth quarter financial year 2012 earnings to soar on the back of strong Revenue Passenger Kilometres (RPK) growth and load factor amid seasonally higher yields and flat jet fuel price.
In a research note, it said it expects overall yields in the fourth quarter, typically the strongest quarter, to jump five per cent to six per cent year on year (y-o-y) to between 21.4 to 21.6 sen, propelled by seasonally higher airfares and take-up of ancillary services.
“We expect AirAsia to post revenue of RM1.48 billion for quarter four, boosting its financial year 2012 revenue to RM5.07 billion.
“With the jet fuel price being relatively flat quarter on quarter, and only up by 1.7 per cent y-o-y in quarter four, the company’s quarter four earnings, including those from non-equity accounted associates, may touch RM334 million,” it said.
OSK Research said for the full year, AirAsia’s core earnings could potentially meet its financial year 2012 estimate for RM797.8 million.
“We do not expect any major upside in cost as the losses from its Philippines and Japan associates may be mitigated by higher earnings contributions from AirAsia Expedia, Thai AirAsia and Indonesia AirAsia.
“Incorporating the market caps of Asia Aviation and the group’s insurance arm, AirAsia is trading at a cheap 7.4 times price-to-earnings versus its historical and peers average of 10 times and 12 times respectively,” it added.
OSK Research said it would maintain its “buy” call on AirAsia with a fair value unchanged at RM3.39.
BERNAMA
