Friday, January 17, 2014

AirAsia stock poised to take off: CEO

Investors may have fallen out of love with Asia's largest budget airline, but the founder and chief executive of AirAsia told CNBC the indicators are there for its share price to recover.

"When people begin to look at it on a macro scale, then our share price will begin to return to where it should be. We're trading at NTA (net tangible assets) at the moment which is fairly ridiculous, our margins are still up there, our cash [flow] is very strong but we're in a good part of the world so we're optimistic," Tony Fernandes told CNBC Europe's "Squawk Box."

Shares of Asia's largest budget airline by passengers and fleet size have fallen 19 percent over the last 12 months with its units in the Philippines and Indonesia struggling to turn a profit and are not predicted to do so for two years.


Summing up the airline's problems with increased competition from other low-cost carriers, AirAsia Berhad, the company's full name, reported third-quarter net profits down 78 percent in November 2013 from the previous year on foreign exchange losses on borrowings.

Despite the decline, the AirAsia X – the long-haul unit of AirAsia - placed an order for 25 Airbus jets worth $6 billion last month as it aims to see off competition in the region and increase its routes to Europe.

Fernandes said the company's shares had taken a "battering" over investors' reaction to a perceived problem of overcapacity in the industry. "There have been lots of reports out there that people are buying lots and lots of planes – most of those are coming from two airlines, from us and an airline in Indonesia – but no one has looked at the demand side," he said.

"We're in Asia, probably the best part of the world however way you want to measure it right now. We've got 3 billion people [there] – that's 10 times the size of Europe and there is just so much demand. Just in December, AirAsia had a passenger load factor (the occupancy rate of an aircraft) of 91 percent."

Fernandes believed the long-haul unit of the group, AirAsia X, was the key to "connecting Asia" and would be an equivalent of the Dubai-based Emirates airline. "Asia is more than a 4-hour market and I'm very keen on connecting that market. I'm really creating an Emirates within Asia so you can move anywhere within Asia on AirAsia and AirAsia X."

The move could be seen as a risky one with price instability in Asia and increased competition facing the group but Fernandes was confident.

"I started this airline with two planes against Malaysian Airlines' 130 planes. We're now the largest airline…prices are not an issue provided you have a cost structure that can deal with those prices," he said, adding that he had a "very simple strategy" to reduce costs as much as possible.

"Whatever fares are, cost is king," he remarked. "The lowest cost produces the lowest fares and the lowest fares gives us tremendous demand and makes it very hard to compete with us."

"We're the lowest cost airline in the world and we're going to take out another 7.5 percent [of costs this year] and we already took out 5 percent [of costs] out last year...Let's not make no bones about it, you'd invest in AirAsia because we're the lowest cost airline and the lowest cost will always win."




Source/Extract/Excerpts/来源/转贴/摘录: CNBC
Publish date:17/01/14

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Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
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