KUALA LUMPUR (Dec 5): TA Securities has upgraded Malaysia Airports Holdings Bhd (MAHB) to “buy” at RM7.08 with an unchanged target price of RM7.85 based on unchanged discount rate of 12%.

In a note on Tuesday, the research house said the recent selling pressure appears overdone.

On the outlook for the airports operator, TA Securities said expectations are running high on travel demand to and from China and Malaysia, thanks to the establishments of visa-free entry effective Dec 1, which will exempt visa requirements for Malaysian tourists (15 days) and Chinese tourists (30 days).

“So, MAHB’s traffic data for Dec-23 to 1Q24 would serve as important indicators of the return of Chinese visitors to Malaysia.

“In addition, we believe Malaysia’s tourism industry is hopeful for China’s president Xi Jinping visit, which may bring more excitements to Malaysia’s travel and hospitality industry,” it said.

The research house said that the government has set the target of attracting 5 million  Chinese tourists on a yearly basis after the visa-free regime.

“This is a tall order, in our opinion, considering the fact that only 3.1 million tourists visited Malaysia in 2019,” it said.