Aquawalk Group Bhd - Swimming into New Waters
Tue, 18-Nov-2025 09:29 am
by Research Team • Apex Research

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AQUAWALK (0380)

Target Price (RM)

0.510

Recommendation

Buy

  • AQUAWALK (Aquawalk Group Bhd) is a leading developer and operator of public aquaria in Southeast Asia, owning and operating Aquaria KLCC in Malaysia and Aquaria Phuket in Thailand, and holding a 40% stake in Jakarta Aquarium & Safari (JAQS) in Indonesia.

  • Core earnings are projected to grow to RM40.1m/RM46.9/RM53.3m in FY25F/FY26F/FY27F, at an FY24-27F CAGR of 13.6%, primarily driven by (i) higher visitorship supported by the Visit Malaysia 2026 initiative (ii) potential ticket price adjustments for Aquaria KLCC and (iii) contributions from ongoing upgrade and expansion plans.

  • We initiate coverage on AQUAWALK with a BUY recommendation and TP of RM0.51, based on 20.0x FY26F EPS of 2.5 sen.

 

Key Investment Highlights

Largest aquarium operator in Malaysia and Thailand. AQUAWALK is the largest player in both Malaysia and Thailand’s aquarium industries, with Aquaria KLCC holding an estimated c.51% revenue share in Malaysia and Aquaria Phuket capturing 11–15% of the revenue share in Thailand. These flagship attractions are strategically located in high-traffic tourist areas, drawing more than 1m visitors annually with a balanced 50:50 mix of local and foreign visitors.

 

Visit Malaysia 2026 to Boost Tourism. Under the Visit Malaysia 2026 campaign, the government has allocated RM700m to support the tourism sector and introduced a special income tax relief of up to RM1,000 for entrance fees to local attractions, including marine parks. These measures aim to attract more international visitors and stimulate domestic spending. With enhanced promotional efforts anticipated in the lead-up to 2026, Aquaria KLCC is well positioned to capture rising tourist arrivals and drive earnings growth.

 

Room to Raise Ticket Prices. Aquaria KLCC’s adult ticket prices of RM54–58 for locals and RM80–85 for foreigners remain significantly below regional peers such as the Singapore Oceanarium (SGD42–49, or RM134–156). While no further near-term price hikes are anticipated for Aquaria Phuket, the wide pricing gap between Aquaria KLCC and the Singapore Oceanarium highlights untapped revenue potential. Given the Group’s high operating leverage, any uplift in ticket prices would translate directly into earnings. We estimate AQUAWALK could raise Aquaria KLCC’s ticket prices by c.10% upon completion of the new penguin exhibit in 2HFY26.

 

Upgrade and Expansion Plans Underway. The Group has allocated RM12.2m and RM20.7m from its IPO proceeds to upgrade Aquaria KLCC and Aquaria Phuket, respectively. At Aquaria KLCC, upgrades include a new penguin exhibit targeted for 2HFY26, while Aquaria Phuket will undergo enhancements featuring an expanded aviary area by 2027 and star species additions such as seals, penguins and sand tiger sharks. Regionally, the Group is developing new aquariums in Java, Indonesia and Kota Kinabalu, targeted for completion by FY27 and FY28, with RM17.3m and RM39.6m of proceeds earmarked, respectively. The Java aquarium is being developed under a 60:40 joint venture with PTMBB, while the Kota Kinabalu aquarium is under a 60:40 joint venture with Qhazanah Sabah Berhad, supporting earnings visibility through and beyond FY28.

 

Earnings Outlook. We project AQUAWALK’s CNP to grow to RM40.1m/RM46.9/RM53.3m in FY25F/FY26F/FY27F at an FY24-27F CAGR of 13.6%. Growth is expected to be driven by (i) higher visitorship supported by the Visit Malaysia 2026 initiative (ii) potential ticket price adjustments for Aquaria KLCC and (iii) contributions from ongoing upgrade and expansion plans.

 

Valuation and Recommendation. We initiate coverage on AQUAWALK with a BUY recommendation and a TP of RM0.51, based on an assigned 20.0x P/E multiple to its FY26F EPS of 2.5 sen. The assigned multiple represents an 18% discount to the 24.4x average forward P/E of selected local and foreign peers, which we view as appropriate given AQUAWALK’s stronger profit margins and more attractive dividend yield, despite its smaller operating scale relative to global attractions operators.

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