BUSINESS

CAPITAL A'S POSITIVE 1Q FY203 RESULTS FAILS TO PROPEL SHARE PRICE

01/06/2023 10:30 AM

KUALA LUMPUR, June 1 (Bernama) -- Capital A Bhd’s shares continued to slide in the early morning on  Thursday despite reporting its recovery in the first quarter of financial year 2023 (1Q FY2023).

At 10 am, the counter eased two sen to 76 sen with 9.33 million shares transacted.

The PN17-status company recorded a net profit of RM57.10 million during the quarter compared to a net loss of RM903.79 million in 1Q2022.

Revenue surged to RM2.53 billion from RM811.74 million previously, mainly attributed to strong demand from both domestic and international travel segments.

In a note, Hong Leong Investment Bank said it expects the group’s recovery momentum to continue, driven by its ongoing capacity expansion (in tandem with the robust air travel demand) and easing jet fuel price.

The investment bank maintained its buy call on the stock, with a higher target price of RM1.15 compared to 88 sen previously.

It believes that Capital A’s PN17 restructuring exercise is still on track, which will provide further upside to its valuation.

Meanwhile, following the group’s surprising turnaround in 1Q2023, MIDF Research has revised its FY2023 and FY2024 earnings forecasts on Capital A upwards by +127 per cent and +11 per cent, respectively.

-- BERNAMA 


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