AIRASIA Bhd's unconventional business model stands vindicated, as the low-cost carrier managed to score another set of impressive financial results.
Over the week, the company's share price soared after it announced a net profit of RM327.3mil for the three months to September 2010. That represented an increase of 151.6% from the corresponding period last year.
The company's third-quarter revenue was also higher at RM987.5mil, compared with RM739.7mil previously.
Closing at RM2.61 yesterday, AirAsia gained 6 sen a day after the release of the impressive results. Year-to-date, the gain was about 86%.
With its technicals indicating further upside for buying into the share, AirAsia is expected to continue attracting momentum-trading plays.
More participation by retail and short-term traders are expected in the week ahead. Technical analysis on the stock indicates that the counter should continue to extend its gains.
This will be supported by improving fundamentals such as a stronger yield environment, the rebound of its associates' performances and stable fuel prices amid a steadily recovering economy.
Immediate upside for AirAsia is tagged at RM3.10, with support resting at RM2.50.
The comments above do not represent a recommendation to buy or sell. - by CECILIA KOK
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