Friday, June 19, 2009

Airasia Vs MAS





It is really interesting to compared Airasia and Malaysian Airline System Bhd (MAS). Both of them have just released their quarterly report. Airasia released its quarterly report on 29 May 2009 and MAS released it quarterly report on 12 June 2009.
In my humble opinion, Airasia released one of the best quarterly report among our local blue chips; and ironically MAS released one of the worst quarterly report among our local blue chips.
AirAsia Bhd’s earnings rose 26% to RM203.15 million in the first quarter, up 26% from RM161.28 million a year ago.
MAS reported an unrealised fuel mark-to-market (MTM) loss of RM3.38 billion for its first quarter ended March 31, 2009, triggered by the unprecedented collapse in fuel prices in late 2008 and early 2009. The national carrier posted net loss of RM694.8 million in the first quarter ended March 31, 2009 compared with a profit of RM46.6 million a year ago. The net loss included derivative loss of RM557.0 million with the early adoption of financial reporting standards (FRS 139). In a statement to Bursa Malaysia, it said that it has applied and been granted a conditional waiver until Dec 31, 2009 from being categorised as an Affected Listed Issuer under PN 17 after it triggered the criteria under Paragraph 2.1 of PN 17 in relation to shareholders’ equity.
Even though both of them released opposite quarterly report, their share prices also reacted differently. As we can see, MAS shares prices up from RM2.37 on 12 March 2009 to close at Rm3.18 on 19 June 2009. Ya, it gains around 40%. Even though after it released a disastrous quarterly report, it share prices did not suffer much. Why? is it because MAS is a government link company (GLC)?
The scenario is quite different with Airasia. Even though Airasia released quite a good report, its share price drop from RM1.35 on 1 June 2009 to RM1.13 on 19 June 2009 (down around 30%). Its shares price start to drop since the day it released its good quarterly report. Why? Compared to MAS (up 40% since March), Airasia up only around 20%
There is something wrong with our investors, they appreciate losses and purnish profits. Weird thing! Kalau kita teruskan macam ni, Malaysia Boleh?! Malaysia Pasti Boleh??!! #@*#!
I see a good trade in Airasia. For those who like more leverage, Airasia-ce is also a good choice.As a reminder, airsia-ce is going to mature in another 2 month.
Good luck!

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