Posted by supersaiyan3 > 2017-12-04 08:18 | Report Abuse

Very good article!!

Posted by helloworld123 > 2017-12-04 08:52 | Report Abuse

so you are better than TF in running a business?

Posted by VegeKingII > 2017-12-04 09:26 | Report Abuse

most people can do better. nuthugger

Posted by GoodCompanies > 2017-12-04 09:32 | Report Abuse

Wahh..this article is so misleading ...
But since i benefit from it...should i just keep quiet?

Posted by jinsen2644 > 2017-12-04 11:41 | Report Abuse

I like your honest comment, GoodCompanies, HAHAHA

Posted by Tan KW > 2017-12-04 15:32 | Report Abuse

For airline analysts, they should look beyond an airline business, but look at the travel business. What has changed and what has not. Besides airline, Airasia is in the business of (digital) travel.

Even with the above range of RM1.27b to RM1.34b of core net profit for Airasia for the first 9 months, we can almost predict that its core net profit for the year is going to be RM1.8b or more as the final last quarter is typically a huge quarter for travel in this region. Profits and revenue are typically going to be more than 35% of the full year number. With the projected future, we can actually give a decent premium for Airasia - which is not 10x PE projections as provided by the TA analyst. So let's say for the fastest growth market operated by one of the fastest airline, should it not be in the range of 16x to 20x PE? What is a 16x PE for a core net profit of RM1.8b? RM28.8 billion valuation over at the more conservative side - which I am afraid to think, as Airasia's current market value is RM10.6 billion (RM3.17). On the more optimistic side it can be RM40 billion! Why not? A 20x PE for an above average growth company in a fantastic market space and current core net profit is almost RM2 billion.

The Airasia's management has actually done a lot in addressing the analysts - and in fact they are one of the few which has quarterly briefings. They in fact had a Investor's Day for Analysts only in October this year, and what do I get from the updates? Tony Fernandes talked more about its digital roadmaps. Can't they see, they are actually looking at a much dynamic company (still with profits to show) rather than our typical Malaysian companies.

I am not surprise that Tony Fernandes is frustrated with its valuation but I can only say he has targeted the wrong group and not provided the true messages. He has been talking to the group of guys who are taking quarterly reports and making assumptions from that results. They are the ones who dwell more on the deferred taxes and hedging policies than the business.

All I can say is to the research firms, provide more budget for your airline analysts get them more exposed to the business than just the financial numbers. Attend beyond analysts briefings. With that, I am hoping that they provide me with more directions than updates.

https://klse.i3investor.com/blogs/kianweiaritcles/140352.jsp

Posted by russelbin > 2017-12-04 23:28 | Report Abuse

Airasia selling property to boost profit. you said good or not.Judge yourself. hmm

Posted by AK2899 > 2017-12-05 01:30 | Report Abuse

Bull Market is ask you buy and die ! everyone know how is the market now la.

Posted by HENGYUAN @RM21 CONFIRM COMING > 2017-12-05 09:02 | Report Abuse

ermmmmmmm