Equity Analysis /
Malaysia

MY : AirAsia Group Berhad - International traffic recovery painfully slow

    Raymond Yap
    Raymond Yap

    Head of Regional Transport

    CGS-CIMB
    23 November 2021
    Published by

    9M21 core net loss made up 83%/92% of our/consensus FY21F forecasts, underperforming due to forex losses in 3Q21 and wider digital losses. Reiterate Reduce and cut TP to 14 sen, still based on P/RNAV of 1x, rolling forward to end-CY22F, and factoring in RM2bn value to the digital business. Derating catalysts include our forecast for continued airline losses due to the slow reopening of borders and persistent investment-phase digital losses.