Equity Analysis /

MY : Malaysia Airports Holdings - Negative regulatory outcome likely blunted

    Raymond Yap
    Raymond Yap

    Head of Regional Transport

    13 August 2022
    Published byCGS-CIMB

    In our 12 Aug report (yesterday), we noted that MAVCOM’s new proposal may force MAHB to give up 90% of its cumulative profits in 2023-25F. A closer reading of MAVCOM’s document suggests that only profits above a certain permitted regulatory return (‘excess returns’) will have to be given up. Maintain Hold and SOP-based TP of RM6.76, as the potential negative impact on MAHB will likely be less than initially feared, if at all.