KUALA LUMPUR (Feb 6): Malaysia Airports Holdings Bhd (MAHB) shares rose 3.15% in early trade this morning after its operating agreements for KL International Airport (KLIA), klia2 and other Malaysian airports have been extended by 35 years. Malaysia Airports (Sepang) handles the management, operations, maintenance and provision of airport-related services in KLIA, Low Cost Carrier Terminal (LCCT) and klia2 in Sepang. Hong Leong IB Research has upgraded MAHB to “Buy” with a higher targer price of RM9 (from RM6.60) after the government granted MAHB a 35-year extension on its existing 25-year concession of operating all the airports in Malaysia (except Senai), effective until February 2069. “We are positive on the extension, which will enhance MAHB’s long-term earnings and cash-flow certainties. “With the extension of Operating Agreements (which increases our timeline of earnings and earnings projection), we upgrade MAHB to Buy with higher target price of RM9 (from RM6.60) based on DCFE,” it said.

Source: The Edge Markets February 06, 2017 01:40 UTC