KUALA LUMPUR (Nov 4): Malaysia Airports Holdings Bhd fell as much as 1.7% after the airport operator reported a 99% drop in third quarter net profit from a year earlier. The latest financials have invited analysts' downgrades for the stock.
At 9.59am, Malaysia Airports was traded at RM7.19 with 83,300 shares done. The stock had earlier fallen as much as 12 sen to RM7.11.
For comparison, the FBM KLCI declined 3.7 points or 0.2%.
Yesterday, Malaysia Airports said net profit fell 99% to RM1.61 million in the third quarter ended September 30, 2014 (3QFY14) from RM112.78 million a year earlier.
Revenue was lower at RM675.76 million versus RM972.7 million previously.
Today, AmResearch Sdn Bhd analyst Wong Joe Vuei said the research firm had cut its earnings forecast for Malaysia Airports by 34% to 36% during FY14 to FY16.
Wong said the earnings downgrade came with a lower target price of RM7.18 for Malaysia Airports shares compared to RM7.20 previously. AmResearch maintained its "hold" call for the stock.
"MAHB (Malaysia Airports) reported third quarter earnings of RM1.6mil, bringing 9MFY14F profits to RM85.6mil (-75% YoY). This accounted for 56% of our previous full-year estimates (consensus: 55%)," Wong said.