HMA, as an airport operator and part of the tourism industry, has been adversely affected by Covid-19. The pandemic caused various controlling measures to be implemented by China, specifically on crowd movement and transportation, and as a result the airline industry have also been severely affected. For the two months ended Feb 29, HMA’s revenue from the aviation business and non-aviation business recorded a decrease of 40% and 22% respectively compared with the same period of FY2019. HMA has responded to this by taking supportive measures such as a preferential scheme for the take-off and landing fees of airlines and a reduction of rents for commercial tenants to mitigate the operational pressure on both these parties.
Hainan Meilan International Airport: +109.5%
SINGAPORE (June 26): Hong-Kong listed Hainan Meilan International Airport (HMA), previously known as Regal International Airport Group, operates the Meilan Airport located in the Hainan province of China. To recap, the two main business segments of HMA are its aeronautical (terminal facilities, ground handling and passenger services) and non-aeronautical (leasing of commercial and retail spaces, franchising of airport related business, advertising, car parking, cargo handling and sales of consumable goods) business. HMA was the top performer among our top 10 stock picks, with a 109.5% return in six months, significantly outperforming the other two benchmark indices, the Hang Seng and MSCI Hong Kong which lost 10.6% and 10.1% respectively.
