Taking Off From The International Runway
With Malaysia officially shifting to the endemic phase, we envisage that the aviation sector will progressively resurrect its pre-pandemic earnings dynamics. We expect both MAHB and CAPITALA to deliver a net profit turnaround in 2022, and prefer MAHB for its attractive valuations and event catalysts. Meanwhile, concerns on the Russia-Ukraine war and inflationary pressures have manageable direct impacts and can be effectively transferred to end-consumers. Maintain MARKET WEIGHT.