Capital A (former Air Asia)

[winston]

not vested

Just getting started
Maintain BUY call and MYR1.00 SOP-TP (+6%)

We hosted CAPITALA at our Invest ASEAN 2024 Corporate Day in Penang on 11-12 Jun.

Clearly, the focus of discussions was on its airlines which will be sold to AAX in exchange for AAG shares.

We came away feeling positive about the airlines’ prospects.

Recall that CAPITALA shareholders will still have exposure to AAG as every 1 CAPITALA share entitles them to 0.4-0.5 AAG shares (link).

CAPITALA also expects its PN17 status to be lifted by mid-2025E.

Our earnings estimates are unchanged.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/389452.pdf

[winston]

not vested

Meek end to FY24 but strong guidance for FY25

Maintain HOLD with lower SOP-TP of MYR0.86 (-14%)

Earnings underperformed although revenue was in-line.

We slash FY25E/ FY26E earnings by 49%/26% and introduce FY27E.

Consequently, we cut our SOP-TP to MYR0.86 from MYR1.00.

Maintain HOLD.

On another note, FY25E guidance is more aggressive than our estimates.

Concerning its PN17 status, CAPITALA hopes to complete the disposal of its aviation business to AirAsia X in Apr/May and have its PN17 status lifted by mid-FY25E.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/442122.pdf

[winston]

not vested

Capital A (BUY)
PN17 exit on sight, severely undervalued

CapA’s PN17 exit is on sight by 1QFY26, with the disposal completion of Aviation Group to AAX and distribution dividend-in-specie of AAX shares to entitled shareholders based on 0.389 ratio.

CapA will focus on growing 5 major businesses –
1) ADE;
2) Teleport;
3) MOVE;
4) BigPay; and
5) ABC.

We believe current share price RM0.915 is severely undervalued as the stake in AAX (based on current share price of RM1.70) is already worth RM0.92 , while the remaining business is valued at RM0.80-0.92.

Maintain BUY with a higher TP: RM1.70 (from RM1.68), as we change our valuation methodology to SOP.

Source: HLIB

[winston]

not vested

5099 CAPITALA (BUY)
Strong 9MFY25, expecting another high 4Q

CapA continued to record improving earnings in 3QFY25 with core PATMI RM254.8m on improved Aviation (MAA & IAA), boosting 9MFY25 to RM599.8m.

We deem the results in line with HLIB’s (63.2%) as we expect stronger 4QFY25, on seasonally stronger travel demand with USD depreciation and lower jet fuel prices.

Maintain BUY with an unchanged TP of RM1.70 (ex-date TP: RM1.05) based on SOP, as we expect the group to continue gain traction in 2026.

Source: HLIB

[winston]

not vested

Close to banishing the PN17 ghost from COVID-19

Maintain BUY with higher TP of MYR1.30 (+19%)

CAPITALA’s results beat our expectations yet again.

We lift our earnings estimates by 37-53% and raise our SOTP-TP to MYR1.30 from MYR1.09 as we roll forward our valuation base year to FY26E from FY25E.

We expect Dec 2025 to be busy for CAPITALA as it sells its 5 airlines to AAX in exchange for new AAX shares in an effort to lift its PN17 classification.

Separately, our proprietary ESG score for CAPITALA is trimmed to 53/100 from 59/100 on more greenhouse gas emissions and waste generated.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/502110.pdf

[winston]

not vested

Capital A poised for upswing in final quarter

A strong final quarter can be expected of Capital A Bhd, supported by peak travel, firm forward booking momentum and a recovery in Thailand since October 2025.

Full fleet availability by year-end should position the group well for 2026, when it plans to add 10 aircraft alongside seven redeliveries.

The group’s third quarter of financial year 2025 (3Q25) results were better than expected, though MBSB Research remains cautious about potential maintenance cost pressures in 4Q25.

Source: The Star

https://www.thestar.com.my/business/bus ... al-quarter

[winston]

not vested

Capital A shares surge nearly 90pct after price adjustment

By Azanis Shahila Aman

The counter, which opened at an adjusted price of 25 sen, surged to 47 sen, an increase of nearly 90 per cent.

Source: NST

https://www.nst.com.my/business/corpora ... adjustment

[winston]

not vested

Capital A fails to get Bursa approval for extension to complete proposed distribution

Source: The Star

https://www.thestar.com.my/business/bus ... stribution

[winston]

not vested

5099 CAPITALA (BUY)
New chapter: Pure aviation services play

Following the disposal of aviation to AAX in Dec 2025, CapA has become one of ASEAN’s largest aviation services group - ADE MRO, Teleport logistics, MOVE OTA, Santan catering and NEXT branding.

The group is positioned for strong earnings growth through its strategic expansion plans and leveraging on AAX’s regional and long-haul growth across ASEAN, North Asia, Australia, the Middle East, Central Asia, Europe, and Africa.

We reiterate our BUY rating on CapA with an unchanged TP of RM1.05, based on SOP (18x FY26 FD P/E for aviation services + RM2.2bn fair value for the 19.5% AAX stake).

The high P/E is justified by its sustainable earnings growth in 2026-2027f and in line with elevated peer valuations.

Management intends to distribute the 19.5% AAX stake (655.2m shares) to shareholders via div-in-specie over time.

Upliftment of PN17 status in 1Q26 will improve investors’ confidence and support further valuation re-rating.

Source: HLIB