Posted by linheng > 2021-02-12 10:49 | Report Abuse

Maintain UNDERPERFORM, with unchanged TP of RM0.05 pegged to valuations of 0.1x PBV. No changes to our FY21-22E numbers, as the new wins fall within our FY22E contract replenishment assumption of RM5b.
Although we are positive on the contract wins, we still deem them insufficient to sustainably turn around the company into profitability for the time being. The group’s net-gearing still remains at a high of 1.1x, with ESG also being a concern with the company.
Risks to our call include: (i) better-than-expected recognition of order book and project execution margins, (ii) huge replenishment of order book, and (iii) significant improvements in cash flow and balance sheet.
Source: Kenanga Research - 11 Feb 2021
READ THIS CAREFULLY.
BASICALLY EMPHASIS ON HIGH GEARING OF 1.1X AND ESG CONCERN
AIRASIA GOT MUCH MUCH HIGHER GEARING AND VERY SLOW RECOVERY IN REVENUE.
ITS A GOOD TIME TO REFINANCE YOUR LOAN WITH LOWER INTEREST RATE. WITH KHAZANAH BEING THE CONTROLLING SHARE HOLDER, THE LOANS WILL CERTAINLY BE REFINANCE. NO CASH CALL TOO COS KHAZANAH GOT NO MONEY
WONDER WHY THE ESG CONCERN. OIL IS NOT CARBON FRIENDLY LAH. WANT TO TALK ABOUT ESG
IN O&G INDUSTRY.