Capital A Among Active Stocks Today, Gains Over Four Pct On Positive 1Q Performance

KUALA LUMPUR, June 3 (Bernama) -- Capital A Bhd has emerged as an active stock today, with its share price rising over four per cent following its strong first quarter of 2025 (1Q 2025) performance, which saw the company’s turnaround with a net profit.

The group returned to the black with a net profit of RM689.57 million in the 1Q ended March 31, 2025, from a net loss of RM91.55 million in the previous corresponding quarter.

In a research note today, Public Investment Bank Bhd (PIVB) said that with the group’s restructuring plan on track for completion by June 2025, which provides a clear roadmap to operational recovery, it believes Capital A is well-positioned to capitalise on growing regional travel demand. 

“Capital A’s corporate exercises are nearing completion with the disposal of the aviation business, and the Practice Note 17 (PN17) regularisation is anticipated to be completed by June 2025,” it said.

PIVB said that pending conditional precedence requirements to be fulfilled include RM1 billion placement, consent from the Stock Exchange of Thailand, and consent from four aircraft lessors and two banks. 

“As such, we reiterate our ‘outperform’ call on Capital A, with an unchanged target price (TP) of RM1.57,” it said. 

PIVB noted that the group’s aviation unit is poised to continue benefiting from a stronger ringgit and lower jet fuel prices, while the reactivation of the grounded fleet and loan refinancing could also ease costs further by 3Q/4Q 2025. 

Meanwhile, PIVB added that Capital A’s non-aviation units, particularly Teleport and Santan, are expected to contribute more significantly in the coming quarters. 

At 10.16 am, Capital A’s share price rose by 4.0 sen to 89 sen with 10.51 million shares traded.

-- BERNAMA