Deep-dive 2021-3: Malaysia Airports Holdings Berhad

Malaysia Airports Holdings Berhad (MAHB MK) is the monopoly airport operator of Malaysia.

It was privatised in the early 1990s from the Department of Civil Aviation and is now run as a state-owned enterprise controlled by sovereign wealth fund Khazanah. Today, the company operates 39 out of the 42 airports in Malaysia. It also has interests in airports in Turkey, Qatar and Hyderabad.

What's attractive about Malaysian tourism is the potential for inbound Chinese tourism. Malaysia has spectacular beaches, food and welcoming culture. It's also a relatively small country in relation to China, whose outbound tourism has yet to take off in a major way. Only about 10% of Chinese own a passport, a number that could double, triple or even quadruple if and when China becomes a wealthier country. Since China has a population of almost 1.4 billion, that could lead to a major uplift in passenger traffic to Malaysia.

The company has a market cap of US$2.2 billion. As a comparison, Airports of Thailand…