MBSB Research highlight the group’s PN17 upliftment, earnings diversification across its ecosystem businesses and continued expansion in aviation services, logistics and digital platforms despite near-term earnings revisions and segment volatility.
Both MBSB and Hong Leong Investment Bank Bhd maintained their BUY calls on Capital A Bhd with target prices of RM0.63 and RM0.76 respectively.
MBSB Research said Capital A’s SOTP-derived target price was revised down from RM0.77 to RM0.63 after rolling forward valuation to FY27 and lowering AirAsia X assumptions. It noted the group’s shareholders’ equity remained positive at RM597.6 million as of end-1QFY26, marking a key milestone as Capital A’s PN17 status was officially uplifted today.
The research house added that the group’s earnings base continues to diversify beyond aviation through its ecosystem businesses.
It highlighted that ADE, which contributed 39% of 1QFY26 EBITDA, saw earnings rise 7.4% year-on-year driven by higher work orders and stronger redelivery activity, while Teleport recorded record-high tonnage of 96,800 tonnes, up 24.7% year-on-year.
However, overall performance was weighed by higher staff costs and currency impacts, with AirAsia MOVE and Santan both recording weaker EBITDA due to restructuring, capacity shifts and cost pressures.
MBSB Research said Santan EBITDA fell 63.4% year-on-year while AirAsia NEXT declined 16.5% year-on-year following a user base cleanup exercise. It added that ADE is expanding capacity with four new hangar lines targeted by the end of 2027, while Teleport is rebuilding its Bahrain hub by 2QCY26 to strengthen global connectivity. The house also revised FY26 and FY27 earnings estimates down by 34.2% and 27.2% respectively.
HLIB maintained its BUY rating with an unchanged target price of RM0.76, stating that Capital A has achieved two consecutive profitable quarters post restructuring, fulfilling requirements for PN17 upliftment effective 20 May. It said core earnings of RM24.8 million in 1QFY26 reflected a clean corporate structure after the aviation disposal in December 2025.
HLIB added that ADE remains fully booked for 2026 with expansion plans to 20 hangars by 2029, while Teleport continues to benefit from e-commerce growth despite near-term cost pressures.
It said the group remains optimistic on expansion plans across ASEAN and Bahrain and expects stronger performance in the second half of FY26 supported by seasonal demand and ecosystem integration.
As of 9.55 am, the stock price increased by 2.27 to RM0.45.
