MIA generates record profits

The MSE Equity Price Index rose by 0.65% to 3,798.347 points as the gains in BOV, MIA, HSBC, IHI and APS outweighed the declines in Farsons, Plaza and RS2. Meanwhile, four equities closed unchanged with today’s trading activity in local equities amounting to €3.46 million (the highest daily volumes since early November 2023). Download today’s Equity Market Summary.

Malta International Airport plc surged by 4.5% to an almost three-month high of €5.85 across twelve trades amounting to 150,309 shares. Today, MIA published its financial results for 2023. Total revenue surged by 36.6% to a record of €120.2 million compared to €88.0 million in 2022, mostly driven by an increase in aviation-related revenues as a result of record passenger movements. The revenue generated by MIA during 2023 exceeded the previous record of €100.2 million (achieved in 2019) by 20% as the airport welcomed 7.80 million passengers in 2023 compared to 7.31 million in 2019 (pre-COVID). The airport operator generated its highest-ever operating profit of €62.7 million (2022: €43.5 million). After accounting for finance costs amounting to €2.17 million and investment income of €1.48 million, MIA reported a pre-tax profit of €62.2 million (2022: €41.8 million, 2019: €52.6 million). Following a tax charge of €21.9 million, MIA reported a record net profit of €40.3 million. The Board of Directors is recommending a final net dividend of €0.12 per share to be paid not later than Friday 31 May 2024 to all shareholders as at the close of trading on Thursday 11 April 2024. The final dividend was unchanged from last year and coupled with the net interim dividend of €0.03 paid in September 2023, the total net dividend attributable to the 2023 financial year amounts to €0.15 per share (2022: €0.12) which amounts to a payout ratio of 50.4% (2022: 41.8%)

HSBC Bank Malta plc advanced by 0.7% to a fresh four-year high of €1.39 across six deals totalling 27,926 shares after recovering from an intra-day low of €1.35 (-2.2%). HSBC Malta’s Board of Directors is recommending a final net dividend of €0.0585 per share to be paid on 25 April 2024 to all shareholders as at the close of trading on 14 March 2024 subject to approval by the Annual General Meeting scheduled for 18 April 2024.

Also in the banking sector, Bank of Valletta plc advanced by 1.5% to a one-month high of €1.34, after failing to hold onto an intraday high of €1.35 (+2.3%) over nine trades amounting to 60,197 shares.

APS Bank plc gained 0.9% to the €0.545 level over nine trades totalling 22,361 shares.

International Hotel Investments plc rose by 13% to a one-month high of €0.52 as 2,800 shares changed hands.

Simonds Farsons Cisk plc shed 4.3% to the €6.70 level over seven trades totalling 85,005 shares.

Plaza Centres plc fully reversed yesterday’s gains as it plummeted by 12.6% to the €0.59 level on a single deal of 7,000 shares.

The ordinary shares of RS2 plc slumped by 12.8% to a one-year low of €1.02 over two trades of 6,000 shares.

Tigné Mall plc was today’s most actively traded equity as it closed unchanged at the €0.82 level across four deals having a market value of €1.61 million.

A single trade of 10,000 shares of Malita Investments plc left its share price untouched at the €0.492 level. Today, the offer period opened for Malita’s 4-for-9 rights issue for an amount of up to 65,825,806 new ordinary shares are offered at €0.50 per share. The net proceeds from the Rights Issue, estimated at €32.5 million, are principally earmarked to part-finance the required capital expenditure for the ongoing Affordable Housing Project. The Rights Issue Offer Period will close on Friday 15 March 2024.

Also in the property sector, Trident Estates plc held the €1.17 level as 124,955 shares changed hands across four deals.

PG plc traded flat at the €2.08 level across five deals amounting to 62,000 shares.

The RF MGS Index declined for the second consecutive session as it fell by 0.15% to 885.080 points. Data released today showed that the GDP in the US during the last quarter of 2023 was revised to 3.2% from previous estimates of 3.3%. During a speech, Federal Reserve Governor Michelle Bowman said that she does not foresee any decrease in the range of the federal funds rate until it is certain that inflation is sustainably falling towards the Fed’s target of 2%. Ms Bowman commented that the currently robust economic activity as well as the tight labour market create an upside risk to inflation which could stall progress in reducing inflation or even cause prices to resurge. Meanwhile today, two ECB policymakers supported the narrative that until more data is available, a change to the ECB’s deposit rate is unlikely. Particularly, the ECB is awaiting the wage growth data which will be released next May.

This report contains public information only and is not to be construed as investment advice or an offer to buy or sell any securities. Information contained herein is based on data obtained from sources considered to be reliable, but no representations or guarantees are made with regard to the accuracy of the data. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Rizzo, Farrugia & Co. (Stockbrokers) Limited is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap—370 of the Laws of Malta and a member of the Malta Stock Exchange.