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Malaysia Airports Placement - Khazanah Sells a Small Stake

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Equity Bottom-Up

Malaysia Airports Holdings / Equity Bottom-Up

<ul><li>Good growth in core profit, slow asset growth, and low correlation with western stock markets relative to its sector</li><li>Development of Kuala Lumpur International Airport’s (KLIA) surroundings through JV and leasing is likely to build up revenues based on the company’s targeted traffic rise of more than 40% by 2020</li><li>Launch of the eWTP (an open trade platform for SME) and DFTZ (a logistics facility) based at KLIA should increase revenues in coming years through fees and land leasing</li><li>Looks expensive on PE due to low earnings, but recurring profit has turned which cold lead to further re-rating</li><li>Risks: Terrorist attacks and reduced air travel</li></ul><p><em>* Consensus Estimates</em></p>

Good growth in core profit, slow asset growth, and low correlation with western stock markets relative to its sectorDevelopment of Kuala Lumpur International Airport’s (KLIA) surroundings through JV and leasing is likely to build up revenues based on the company’s targeted traffic rise of more than 40% by 2020Launch of the eWTP (an open trade platform for SME) and DFTZ (a logistics facility) based at KLIA should increase revenues in coming years through fees and land leasingLooks expensive on PE due to low earnings, but recurring profit has turned which cold lead to further re-ratingRisks: Terrorist attacks and reduced air travel* Consensus Estimates

MAHB: Flying High with Aero and Non-Aero Services