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