Aquawalk Group Bhd - Below Expectations
Thu, 26-Feb-2026 09:07 am
by Daryl Hon • Apex Research

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AQUAWALK (0380)

Target Price (RM)

0.51

Recommendation

Buy

  • AQUAWALK’s 4QFY25 CNP came in at RM7.6m (-34.8% QoQ) after adjusting for listing-related expenses (+RM1.1m) and other EIs, bringing 12MFY25 CNP to RM36.8m. The results came below expectations, accounting for 92% of our full-year estimates.

  • The Group declared a final dividend of 1.0 sen (ex-date: 20 Mar 2026).

  • Maintain our BUY recommendation on AQUWALK, with a of TP of RM0.51 based on an unchanged 20.0x P/E applied to FY26F EPS of 2.5 sen. 

 

Results below expectations. After adjusting for listing-related expenses (+RM1.1m) and other EIs, AQUAWALK’s 4QFY25 CNP came in at RM7.6m (-34.8% QoQ), bringing 12MFY25 CNP to RM36.8m. The results came above expectations, accounting for 92% of our full-year estimates.

 

Dividend.  The Group declared a final dividend of 1.0 sen (ex-date: 20 Mar 2026).

 

QoQ. CNP fell 34.8% QoQ despite a modest 0.8% revenue increase, supported by stable visitorship during the year-end school holidays, while the earnings decline was mainly driven by a 99.5% surge in operating expenses, largely attributable to higher staff, marketing and year-end administrative costs associated with seasonal peak operation.

 

YoY. Since AQUAWALK was only listed in November 2025, no YoY comparison is available.

 

Outlook. We expect FY26F to be favourable for AQUAWALK, driven by higher tourist arrivals ahead of the Visit Malaysia 2026 campaign, supported by ongoing tourism promotion initiatives and the Malaysian Government’s RM1,000 domestic tourism tax relief. 1QFY26 is also anticipated to see firmer seasonal traffic, boosted by festive demand during Chinese New Year and Hari Raya. To further enhance visitorship, Aquaria KLCC plans to launch a new 2,500 sq ft interactive attraction, Discovery Zone 6 in early Q2 2026, featuring three high-tech zones: projection mapping, “Create a Creature” digital colouring and an AI photobooth experience. As a standalone ticketed offering, the new zone is expected to lift average revenue per visitor and potentially support earnings growth.

 

Earnings Revision. Our forecasts are maintained at this juncture, pending the forthcoming briefing.

 

Valuation and Recommendation. We maintain our BUY recommendation on AQUWALK, with a of TP of RM0.51 based on an unchanged 20.0x P/E applied to FY26F EPS of 2.5 sen. We remain positive on the Group’s outlook, driven by 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.

 

Risks. Failure to secure new strategic locations and lease renewals, revocation of licenses & permits and high fixed cost structure that may pressure margins.

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