Assuming that the increase will not have been factored prior to the announcement. Tripling of KQ's 2009-10 H1 PAT takes it to Kshs 2.58B in 2010-11 or Half Year EPS of Kshs 5.6.

If we assume a neutral or positive outlook statement and that the profits have arisen out of operations, folks would start postulating full year EPS of Kshs 9 after discounting some risk in H2. KQ is an airline after all.

Historically, KQ has generally traded at a foward PE of 10 or therabouts. Theoretical price could then be headed back to Kshs 90+.

I trust that this is a hypothetical situation. I am fairly certain that KQ cannot achieve this feat in this Half, unless of course you are referring to the Operating Profits which were a miserly 160 million. I expect this to go up by a factor of more than 10!!!

Daily to China and Naija means much better utilization of crew as they don't have to stay for days in Lagos or China waiting for a plane to bring back to Nrb.
Meanwhile I believe KQ goes xd on Friday - should we expect a price drop?

Well, the dividend is 1/- so it matters little if it drops 1/- after it is xd...

I wish I could go for the AGM lakini it is a whole day affair!

KQ going xd will not affect the share price. The low dividend payout is actually the 'cause' of the current low price.

Having said that, the possibility I have propositioned is not factored into the current share price.

Let's await 4th of Nov.

but dividend payout has forever been low how could it be the reason for the current low price of the KQ share??.

I agree with @mwanahisa that the Operating Profits for 1H 2010-11 will be very good with the increase in traffic. The recent international/Africa KQ flight I took was FULL... yaani, 100% full...

i bought 5000 of kq last year nov @ 24 and it hit 60 by jan. I'll be buying more when it hits 45 then wait for jan.

Are you predicting the stock to rise to 100 and above

Thinking back on my last flight on KQ (intra-African) & the 737-800 was FULL... If they have similar flights over most of Africa (the most profitable section) then they are on a roll!!!

I can't speak to the share price but I think the 1H 2010-11 PAT will be good & the Operating Profit will be spectacular vs last year!

@horton, do you mean they had loaded the cargo then offloaded it? Or they never loaded it in the first place? If the former, the cargo manager should be fired as loading an aircraft is really basic math. He cost me the shareholder lost earnings as time was wasted and the craft delayed. Given the tight turn around times KQ has on its craft, that means a knock on effect on delayed connections for passengers resulting in needless accommodation costs.