HLIB maintains 'buy' call on AirAsia
Published on: Wednesday, December 07, 2016
Kuala Lumpur: Hong Leong Investment Bank (HLIB) has maintained its "buy" call on AirAsia Bhd and the target price of RM3.85, following news of the airline's 2017 fleet expansion.In a note Tuesday, HLIB said AirAsia planned to add 26 aircraft, a 15.9 per cent year-on-year increase, bring the total fleet size to 204 in 2017."The planned capacity is to match the strong demand growth especially in the North Asia sector.
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HLIB also said the placement exercise of additional 20 per cent shares by major shareholders was expected to be completed by the first quarter of 2017.It said AirAsia played down the ringgit's impact on its operations, which would be offset by accumulated earnings from capacity expansion, higher yields and ancillary income.Stay up-to-date by following Daily Express’s Telegram channel.
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