Q: your view on MAL please, thank you
5i Research Answer:
MAL operates as an aerospace and defence components supplier that is still recovering from the pandemic, trading at 15.2x Forward P/E. In the 2Q, MAL’s revenue grew 15% to $191M, missing estimates of $220M and EPS was $0.04, missing estimates of $0.07. Missing expectations on both top and bottom lines. The recovery is happening at a slower pace than expected. MAL also recently cut dividends, which of course we don’t like to see. MAL is a potential turnaround player, and there are few choices in Canada that are defense-related. We think it has potential, but we also think buyers have time here.