What is the target operating profit margin for MAG by 2030?

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MAG Aims for Nine Per Cent Operating Profit Margin by 2030

Malaysia Aviation Group (MAG) has set a target to achieve an operating profit margin of nine per cent by the year 2030. This objective is a key component of the group's Long-Term Business Plan 3.0 (LTBP3.0), which prioritises strengthening its financial position to support future expansion and growth initiatives.
Focus on Financial Self-Sustainability

The immediate priority for MAG is to ensure the group becomes financially self-sustaining. This involves reinvesting profits back into the business to fund significant capital expenditures, such as the acquisition of new aircraft. The group's main shareholder, Khazanah Nasional Bhd, acknowledges the substantial investment required for growth, hence dividend payouts are not currently a primary focus.
Strategic Fleet Expansion and Funding

MAG is planning considerable capital expenditure over the coming years, including the procurement of approximately 20 wide-body and 30 narrow-body aircraft. This expansion is crucial for fleet renewal and increasing capacity. Funding for these acquisitions is intended to be raised independently by MAG through various financial instruments, including sales, finance leases, or capital market options, rather than through shareholder contributions.
Exploration of Currency Hedging

To mitigate financial risks associated with international transactions, MAG is exploring funding options in currencies other than the Malaysian ringgit. This includes considering currencies such as the US dollar or euro, aiming to establish a natural hedge against currency fluctuations. This strategic approach is part of the broader effort to enhance financial resilience.

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What is the target operating profit margin for MAG by 2030?

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