AirAsia announced a surprise first and final single tier dividend payment of 5 sen in relation to FY11. This translates into 1.43% net dividend yields.
We are positive on the dividend payout, as we believe AirAsia has reached a strong and stable growth stage, and in position to better reward shareholders.
We do not expect the dividend payout (~RM140m) to have any significant impact on AirAsia strong cashflow. Furthermore, AirAsia is likely to realize gains from the listing of its 49% owned AirAsia Thai unit by June 2012.
We believe this latest development will gradually change investors’ perception that the stock not only has high growth, but also in position to declare dividend, commencing FY10.
Maintain Buy on AirAsia (TP of RM4.70).
Source: Hong Leong Investment Bank Research - 16 May 2012
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Jake
Better than the other national airline...
2012-05-16 12:32