MAHB - healthy traffic growth

Healthy traffic growth will serve as a re rating catalyst for MAHB.

The battle for supremacy among Malaysian carriers will be very good for MAHB as sharply lower fares will spur passenger traffic.

The intense competition among the airlines is likely to persist in 2014 and will lead to a healthy traffic growth, serving as MAHB’s key re rating catalyst.

MAHB’s share price has done well because of the massive success of Airasia Bhd as a business over the past decade.

There is more upside for MAHB as new entrant Malindo has triggered a new round of price competition. MAS and Airasia has been injecting capacity since May 2013.

MAHB’s share price has down well since the 2009 restructuring, which cleared investors deep reservations about the viability of the business. This enabled MAHB so settle its KLIA dues to the government by end 2012 just four years later.

The commission of KLIA2 by 2014 or early 2015 will provide even more upside for lone term investors.

The commission of KLIA2 will double MAHHB’s retail space at the entire Sepang airport complex.

MAHB is the best net on tourism flows during Visit Malaysia Year 2014 without the worry of oil prices, exchange rate and depressed air fares.