Despite an increase, the international PSC at KLIA2 will remain below that of KLIA,” it said.RHB noted that there had has been no increase in passenger service charges (PSC) to compensate MAHB for its RM4bil investment in KLIA2. It added that MAHB’s costs have risen post the commencement of operations at KLIA2 in May 2014, which dragged profits lower. We lift 2017-2018 forecast profit by 48-67%,” RHB said.“Despite continuing weakness in Turkey, we believe a PSC hike in Malaysia will act as a major re-rating catalyst for the stock. Our discounted cash flow based target price rises to RM7.60 after factoring in a PSC hike. Our target price implies 2017 EV/EBITDA (adjusted) of 13.8 times, 11% below the peer average,” it added.

Source: The Star September 20, 2016 03:51 UTC