Maybank Tips MAHB 1Q Core Net Income +40.8%

Maybank IB Research says Malaysia Airports Holdings (5014.KU), or MAHB, may report 1Q core net income (net income less forex translation and all other non-cash items) of MYR129 million, +40.8% on year and +24.8% on quarter. The house says passenger numbers are better than expected, with a better mix profile. 1Q11 passenger growth is likely at 11.9% on year, above management guidance of +8% for 2011. It also significantly outpaces the Asia Pacific average growth of 5.0% and world average growth of 4.0%. "MAHB is highly attractive compared to global peers: 9.6X P/CFO (58% discount to peers), 9.2% ROC (28% higher) and it is lowly geared at 0.33X vs peer group average of 0.69X," Maybank says. The house keeps a Buy call with an unchanged target of MYR7.12. The stock is flat at MYR6.15. MAHB reports its 1Q results Thursday.