AIR ARABIA (AE), a company active in the Airlines industry, loses a star(s) at the fundamental level and sees its general evaluation downgraded. The independent financial analyst theScreener just removed a fundamental star(s) for a 2 over 4-star rating. As such, market behaviour remains unchanged and is evaluated as moderately risky. theScreener believes that the loss of a star(s) merits downgrade to the general evaluation of the title, which passes to Neutral. As of the analysis date January 18...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
2022e P/E in line with historical industry average; Long-term yields attractive. We expect Air Arabia’s operations to gradually recover to pre-COVID-19 levels in 2022e, with the stock trading on a 2022e P/E of 12.4x, in line with its historical average of 12.0x vs. the industry’s historical average of 13.4x. That said, we see Air Arabia’s dividends also returning to pre-pandemic levels starting 2022e, yielding 5.65% vs. 0.94% for global peers and 2.50% for the UAE market. Air Arabia to turn pro...
Supportive dynamics for airlines coverage. Thanks to supply disruptions on the regional and global fronts, Middle East (ME) RPK growth for 2019 is expected to outpace capacity additions, which has been supportive of higher passenger growth (>9% y-o-y in 9M19a) and improved yields (>7%) for our coverage. ME LCCs growth should also continue to outperform FSCs, we believe, as they further expand their market share (17% in 2018 from 9% in 2009). This, in addition to forecasted oil price stability at...
Hike 12M TP by 25% to AED1.56/share. We revise upward our 2017-20 EPS estimates by 45% to reflect lower opex over prudent spending and higher profits from JVs. We see a 15% y-o-y drop in fuel cost/ASK¹ in 2017 (vs. our previous -5% y-o-y forecast), and assume no growth onwards, accounting for potential further reductions. Meanwhile, IATA points to slowest ASK growth rate in 2018, since 2002. Despite being a seasonally weak quarter, we see 4Q17 as a good entry point, as we expect AED92mn in profi...
Air Arabia registered a Q3 2017 net profit of AED376m, an increase of 27% compared to the AED297m reported for the same period last year. The company’s turnover for the third quarter of 2017 increased by 4% to AED1.16bn, compared to AED1.12bn in the corresponding period last year. Air Arabia served over 2.33 million passengers in the third quarter of 2017, an increase of 3% compared to the same period of last year, while the average seat load factor for the same quarter stood at an impressive ...
Air Arabia’s Q2 2017 net profit rose by 21% to AED158m against AED131m in the same period last year. H1 2017 Net profit increased to AED247.8m, a 4% rise compared to the same period last year. Revenues increased to AED906m in Q2 2017 compared with AED894m in the same period last year. In the first six months of 2017, the revenues reached AED1.716bn, i.e. a decrease of 7%. Air Arabia ferried more than 2.05 million passengers in Q2 2017.
Raise 12M TP by 14% to AED1.60/share. We raise our 2017-19 EBITDA forecasts by an annual average of 15%, despite increasing fuel costs, to reflect 5 aircraft additions in 2018 and 15% ticket fare increase in 2017. We expect a DPS of AED0.11 for 2016, yielding 8.1% vs. industry and DFM averages of 3.3% and 3.9%, respectively. Our TP implies a 2017e P/E of 10.2x, in line with the industry average, but 11% below LCC peers due to moderate 2017-19e EPS CAGR of 10% (vs. 18% for LCCs). Our previous rat...
Air Arabia reported a net profit of AED103m for the three months ending 31st March, 2017, a 10% less than the corresponding 2016 figure of AED114m. In the same period, the airline posted a revenue of AED810m, 14% less than the corresponding first quarter of 2016. More than 2.1 million passengers flew with Air Arabia between January and March 2017, in line with the record number of passengers carried in the first quarter of 2016.
Air Arabia swung to a surprise fourth-quarter net loss. The Sharjah-based firm made a net loss of AED38.6m in the three months to Dec. 31. This compares with a profit of AED55.9m in the corresponding period of 2015. The turnover for the three months ending December 31, 2016 was AED814m, a drop of 15% compared to AED956m in the same period in 2015. However, the company flew 2.1 million passengers in the fourth quarter, up by 6% from a year earlier.
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Budget carrier, Air Arabia, the United Arab Emirates’ only publicly-listed airline, reported a net profit of AED529m for 9M 2016 ending Sep 30, 2016, an increase of 16% compared to the AED455.3m reported for the same period last year. The company’s 9M 2016 revenue reached AED2.963bn, an increase of 3% compared to 9M 2015. Air Arabia reported a 26% rise in Q3 2016 net profit.
Maintain AED1.40/share target price and Neutral rating. We cut our 2016-18 EPS forecasts (by 23% on average) to reflect the y-t-d c20% drop in yield (passenger revenue/RPK¹). Our higher long-term yield assumption (+2% p.a. in 2019 onwards) reflects the recent uptick in oil futures (2017-22e) and offsets the impact of lower 2016-18e earnings forecasts on our valuation. Our unchanged target price implies 2017e P/E of 14.5x, 29% above LCC² peers, justified in our view by an above-sectoraverage 2016...
The Middle East and North Africa’s first and largest low-cost carrier, Air Arabia reported a net profit of AED245m for H1 2016 ending June 30, 2016, an increase of 3.5% compared to the AED237m reported for the same period last year. The company’s revenue for H1 2016 reached AED1.84bn, an increase of 5.5% compared to H1 2015. Net profit during Q2 2016 stood at AED131m, 14% less than the corresponding period of 2015.
Decent yield, but low visibility on growth. We believe Air Arabia, the secondlargest low-cost carrier (LCC) in MENA with a 2.2% share of passengers flown in 2014, could be subject to airport capacity constraints, as well as pressure to lower its fares given that regional LCCs should benefit more than Air Arabia from lower oil prices. Our 12M target price of AED1.40/share implies c14% upside and a 2016e P/E of 11.4x, 5.4% below LCC peers, due to a moderate 2016-18e EPS CAGR of 9.6%. The stock’s d...
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