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Thursday, February 22, 2018

AAX: Earnings Soared

Results Update

For QE31/12/2017, AAX reported a net profit of RM84 million as compared to a net loss of RM43 million in the immediate preceding quarter. At the same time, revenue rose 8.5% to RM1.22 billion.

When compared to the same quarter last year (4Q16), revenue rose 4% due to 12% growth in passenger volume. Ancillary revenue per passenger increased by 4% to RM142 year-on-year. The seat load factor was at 83% which was 2 percentage point higher than the same quarter last year. Average fare was down by 8% at RM519 as compared to RM565 achieved in 4Q16. Included in other operating expenses in 4Q17 was provision for doubtful debts of RM11.8 million. The profit before tax for the period was RM135.6 million compared to a profit before tax of RM29.9 million in 4Q16; while the net profit for the period was RM84.4 million compared to a net profit of RM39.0 million in 4Q16


Table: AAX's last 8 quarterly results

AAX's top-line, bottom-line and profit margins are all pointing upwards. Things are beginning to look quite positive for AAX.


Graph: AAX's last 13 quarterly results

Technical Outlook

AAX has been moving sideways for the past 17 months. A breakout above RM0.50 or below RM0.35 would point the way forward for AAX.


Chart: AAX's weekly chart as at Feb 21, 2018 (Source: Shareinvestor.com)

Conclusion

Based on good financial performance, AAX could be a good stock to consider for a very long-term investment.

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

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