MAS (3786) ~ Another Good News for 3Q2012

MAS price is currently @ 1.01




Some updated info:

• Sept 2012 - MAS provide further discounts for airfares and packages until 14 Sept 2012. Offers are valid for travel from 9 Sept 2012 until 31 March 31 2013 (except for some peak periods) (Profit to MAS)
• Petronas revenue drop approx. 29% ~ challenging with lower oil prices and this might get worst in 2013/2014 due to bearish economy in US, Europe and. This might be a good news to MAS for lower oil prices. (Potential Future Profit) 
• Firefly, a subsidiary of MAS, might be returning to its jet operations next year (Potential Future Profit) 
• MAS issued junior Sukuk amounting to RM500mil
• MAS has finalised plans adding three international routes from KK starting Dec 2012 (Future Profit)  
• MAS starts its fifth daily service between KL and Bangkok on 28 Oct 2012 (Profit to MAS)
• MASKargo, a subsidiary of MAS, replace existing two Boeing 747-400F with Airbus A330-200F which will allow better managing capacity to demand (Profit to MAS)
• Oct 2012 - Firefly started “Think Rewards, Think Firefly” campaign which passengers can enjoy special offers on meals and car rentals www.fireflyz.com.my/community/rewards (Profit to MAS)
• MAS starts having double daily Airbus A380 flights from KL to London from 24 Nov 2012 (Profit to MAS)
• MAS will start daily A380 flight between KL and Paris from March 2013 (Future Profit)  
• MAS will join oneworld in Feb 2013 (Future Profit)  
• Nov 2012 - Ethiopian Airlines plans to work with MAS early 2013 eg. work on code sharing and special rate agreement with its Malaysian counterpart (Future Profit) 
• The Finance Ministry plans to sell as much as RM5.3bil of Islamic bonds under a 20-year programme to help the nation’s loss-making carrier buy new aircraft, according to two people familiar with the deal. Malaysian Airlines (MAS) announced in May it planned to lease six Airbus A380s and two A330s for RM5.3bil that would be purchased by the Government.
• MASkargo, a subsidiary of MAS, launched 1st freighter service into Federal Territory of Labuan (Profit to MAS)
• MAS offer 50% discount promotion for its Enrich Frequent Flyer Programme members until 31 Dec 2012 (Profit to MAS)
• MAS third and fourth Airbus A380 arrived KLIA (Profit to MAS)
• Remaining two A380s by the 1Q2013 (Future Profit) 
• Firefly offer 20% discount (Year End Sale) for passengers. Travel period from 8 Jan to 30 June 2013
• MAS executed a funding deal with Turus Pesawat Sdn Bhd (wholly owned by Ministry of Finance) for an Islamic financing arrangement of approx. RM5.311billion  to buy six A380-800 super jumbos, one A330-200F and A330-300 (Future Profit) 
• Firefly start offering direct flights between KL and Haikou in China (Profit to MAS)
• MAS increased flights between KL and Kathmandu to five weekly (Profit to MAS)
• MAS together with American Express and Maybank offer MAS American Express Business Travel Account (Profit to MAS)

Latest Financial news:

• MAS latest 3Q2012 net PROFIT approx. RM37million - previous year has a net losses of approx. RM478million (From losses back to profit)
• Year to date net losses approx. RM484millions - LOWER than previous year which has a net losses of approx. RM1,247million (Approx. 61% less losses)
• Net asset per share increased to 0.64, previously 2Q2012 is 0.45 (Approx. 42% increased)

Previous investment/research companies view:

• OSK Research upgraded MAS to “buy” from a “trading buy” with an unchanged fair value of 1.38.
• 17 analysts by Bloomberg, 12 analysts with a “sell” call, three analysts with “hold” call and two analysts with “buy” call. The target price ranges from 0.85 to 1.79.
• Kenanga Research maintains its “underperform” rating with a 1.06 target price.
• Hong Leong Research also maintains its sell call with a 0.92 target price.

So, their range is 0.85 to 1.79. With current share price of 1.01, the share price might drop approx. 16% or shoot up approx. 77%. What do you think?

To me ~ MAS is worth to consider. I'm hoping it will reach 1.50.

Good luck with your investment!!! ^_*

Again as mentioned in my previous post, One main point is MAS have stop paying out dividends since 2008. If you are not risk taker, you should consider put it in the bank for FD and get around 3% interest per annum.

Previous posts related to MAS:

• MAS (3786) ~ Good News for 2Q2012
• MAS (3786) ~ More Good News to Come?
• MAS (3786) ~ Share Swap with Airasia is Off