Affin Daily Insight (LV) - 25 April 2014 - MAHB / TNB / BAT / PREIT / ECONOMY - ASEAN OUTLOOK / DMR

Top Calls

Results Note � MAHB (REDUCE, maintain) - Costs grew ahead of revenue KLIA2 is scheduled for opening on May 2 2014. In addition, MAHB added that government may subsidise up to RM70m to MAHB if it does not approve the new rates for passenger sales charge (PSC). While, in the short-term it may incur higher initial cost from KLIA2, we expect MAHB to benefit from the new airport, as well as competition among airlines through higher PSC collections and retail spending. However, we believe this has already been reflected in its share price, given the forward PE valuation at 21x 2015E EPS, which is hovering at +2SD above its historical mean PER. MAHB�s 1Q14 core net profit of RM133.3m (+5.3% yoy; +155.3% qoq) came in within our expectation. We reaffirm our REDUCE rating on MAHB. Target price unchanged at RM7.50. Excluding construction revenue (RM121.6m), MAHB 1Q14 revenue grew by 15.2% yoy driven by a 18.1% growth in passenger movement and 12.3% increase in aircraft movement as well as 9% increase in landing rates.

Other Calls

Results Note � Tenaga (BUY, maintain) - 2Q14 impacted by higher costs of imported gas

Results Note � British American Tobacco (REDUCE, maintain) - TIV still affected by extensive illicit market

Results Note � Pavilion REIT (ADD, maintain) - Strong 1QFY14 pull-factor

Economy � ASEAN Outlook � Weekly Wrap (18 � 24 Apr 2014) - BOT kept benchmark interest rate unchanged at 2.00%

Debt Market Research - Volume continues to pick up, focus on the short-end

Morning News & Market Summary

For important disclosures, please refer to the Disclosure section at the end of the individual linked research reports.

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