Capital A Bhd looks like it could shift into higher gear having rebounded from its trough of 64 sen seen in April, its lowest level in over a year. The counter have since moved up to touch 90 sen in May but lost some ground to fall to a low of 71.5 sen on Aug 6.
Fundamentally, the aviation group is looking stronger having returned to the black in FY23 to post a net profit of RM336.8 million from a net loss of RM3.2 billion in the previous year. It then narrowed its quarterly net loss to RM91.6 million in 1QFY24 from RM159.6 million in 4QFY23.
Consensus is forecasting the group to remain profitable with net earnings of RM528.4 million in FY24 and RM801.3 million in FY25, implying forward PERs of 6.2x and 4.1x, respectively.
Meanwhile, Capital A is a beneficiary of the strengthening ringgit, which gained 6.5% against the USD in the past one month to RM4.38 currently. This is expected to reduce its jet fuel costs and sizeable debt level, both of which are mostly denominated in USD.
However, the worst is far from over as it has yet to come out of its Practice Note 17 (PN17) status. It has a massive debt load, which stood at RM4.78 billion as at end-March 2024. Capital A said in Aug 1 that it has made substantial progress in equity and debt-raising efforts, which is expected to be announced in due course.
The immediate key hurdle for Capital A and its medium-haul affiliate AirAsia X Bhd is to convince their shareholders of the merits of the merger between Capital A’s short-haul airlines and AAX. Thus, both airlines need to continue delivering profits to convince their shareholders that the deal is worth it. Capital A is aiming to complete the sale of its aviation assets to AAX by December.
Based on the pro forma effect of the proposed disposals, the shareholders’ fund of Capital A is expected to turn to a gain of RM10.76 billion from a negative position of RM8.8 billion as at Dec 31, 2023, bringing the airline closer to lifting itself out of PN17 status.
AirAsia has been rapidly rebuilding and expanding its network this year. AirAsia Group now has 272 routes, based on OAG data. This compares with 332 routes in July 2019.
On Aug 1, AirAsia Group took delivery of four new Airbus A321neo aircraft, bringing its total fleet to 221. As travel demand picks up, once Capital A puts its house in order, the counter may fly high again.
Chart | Stock Name | Last | Change | Volume |
---|
Created by zaclim | Aug 22, 2024
AEON Co. (M) Bhd is experiencing significant growth, with its stock hitting a 52-week high of RM1.54 on August 21, a 30% surge year-to-date. Can it continue to draw investors’ interest?
Created by zaclim | Aug 20, 2024
PBA has been making a big splash following the revisions on water tariff. This goes to enhance it bottomline and provide a catalyst for investors looking for exposure in this segment.
Created by zaclim | Aug 19, 2024
Vestland Bhd has been building a strong momentum after it dipped to its low of 30 sen in January. Can it continue to make a good run?
Created by zaclim | Aug 16, 2024
Investors should be happy that pole maker Mestron Holdings Bhds seeing a strong rise in its share price in the past 5 days, igniting hopes of sustained upward momentum
Created by zaclim | Aug 15, 2024
AMMB Holdings Bhd has seen its share price tumbled sharply to RM4.22 after hitting a high of RM4.58 in August 1. Signs indicate more upside ahead.
Created by zaclim | Aug 14, 2024
Mikro MSC is adding another company in its portfolio and this would provide a much needed boost to its financials. The counter is already on upward momentum and signals are clear for further upside
Created by zaclim | Aug 13, 2024
After some disappointing share price performance in the past year, Catcha Digital Bhd is playing catch up, crossing the 41 sen resistance mark. Signs are that there is more upside.
Created by zaclim | Aug 12, 2024
RCE Capital Bhd has been increasing to close at RM3.20 on Aug 9. It rose to a high of RM3.40 in January from a low of RM2.21. The counter could move upwards following a consolidation phase.
Created by zaclim | Aug 12, 2024
Shin Yang Group Bhd has been treading at its year high of 98 sen recently and signs indicate it could cross the RM1 hurdle. With business diversification, the upside looks good
Yummy it is indded clear skies for Cap A. Fed approved merger of Alaska and hawaiian airlines. eeven America is doing it , who else but Tony to do it for us. to GREATER skies as they say !
1 day ago
Sslee
CapitalA
Quarter
Revenue
PBT
NP
NP to SH
EPS
NAPS
Financial Year: 31-Dec-2024
31-Mar-2024 5,241,398 -249,843 -244,279 -91,554 -2.20 -2.1100
Financial Year: 31-Dec-2023
31-Dec-2023 4,859,431 116,396 20,953 -159,567 -3.80 -2.0500
30-Sep-2023 4,231,447 -549,981 -468,736 -178,823 -4.30 -2.0000
30-Jun-2023 3,151,131 937,105 929,362 1,118,281 27.50 -2.0100
31-Mar-2023 2,529,713 29,890 26,014 57,095 1.40 -1.3300
Did CapA make any real and not paper profit in year 2023?
If make real profit then why NAPS become more negative?
1 day ago