[THE INVESTOR] Asiana Airlines managed to fend off the burden of increasing oil prices in the third quarter, said Mirae Asset Daewoo on Nov. 7 maintaining a “buy” recommendation and 5,200 won (US$4.64) target price.
Its operating profit fell 14.8 percent on-year to 101 billion won, slightly lower than market expectations, but is decent considering the oil price hike. The improved earnings from subsidiaries including Air Seoul and Kumho Resort cushioned a decline in its bottom line. As oil prices and exchange rate stabilize, its fourth-quarter operating profit will remain steady. The cargo sector will enter a high season and limited supply will maintain improvement, while passenger load will gain, according to analyst Ryu Je-hyeon.
Its financial structure, which has beleaguered the airline company, will further improve when it issues asset-backed securities and IPO of its IT services affiliate Asiana IDT in the fourth quarter, added the analyst.
By Hwang You-mee (firstname.lastname@example.org)