Aquawalk Group Bhd - 4QFY25 post-results briefing takeaways
Fri, 27-Feb-2026 07:45 am
by Daryl Hon • Apex Research

Counter

AQUAWALK (0380)

Target Price (RM)

0.37

Recommendation

Buy

  • AQUAWALK’s 4QFY25 EBIT margin contracted by 14.8ppts QoQ primarily attributable to a sharp 99.5% QoQ increase in other operating expenses.

  • Revenue growth softened QoQ, with a 0.8% increase reflecting normalised 4Q visitorship at Aquaria KLCC after the previous quarter’s anniversary-driven promotional boost.

  • Following the 4QFY25 earnings miss, we cut our FY26F/FY27F/FY28F earnings forecasts by 32%/32%/31%, to reflect lower visitorship growth assumptions and reduce our share of associate profit forecasts amid recent geopolitical tensions in Indonesia that could disrupt tourism flows and weigh on JAQS’ performance.

  • We maintain our BUY recommendation with a lower TP of RM0.37 (from RM0.51), now based on a lower 18x (from 20x) FY26F P/E applied to EPS of 2.0 sen, reflecting a more conservative valuation following the earnings downgrade.

 

We left AQUAWALK’s briefing with the following key takeaways:

 

EBIT Margin Hit from FX & One-Off Costs. EBIT margin contracted by 14.8ppts QoQ in 4QFY25, primarily attributable to a sharp 99.5% QoQ increase in other operating expenses. The spike was largely driven by (i) losses arising from the Group’s investment in associate, JAQS (Indonesia), where capital was injected in USD and subsequent repayments in IDR resulted in translation losses amid IDR depreciation, and (ii) one-off costs including director fees as well as bonus provisions for Phuket staff recognised in December.

 

Revenue Moderates in 4Q Despite Strong FY25 Visitorship. Total visitorship remained solid at 1.6m across Aquaria KLCC and Aquaria Phuket in FY25. However, 4Q visitorship at Aquaria KLCC normalised to 350,000 (from 440,000 in 3Q), as the preceding quarter had been lifted by the Group’s 20th anniversary promotion offering free entry to visitors with August–September birthdays, which explains the softer 0.8% QoQ revenue increase.

 

Ticket Price Revision Planned for 3Q 2026. The Group indicated a planned ticket price revision in 3Q 2026, likely following completion of the new penguin exhibit at Aquaria KLCC alongside a new 2,500 sqft interactive area (Discovery Zone 6). We estimate ticket prices could rise by c.10%, supported by stronger visitor appeal from the enhanced attractions.

 

Outlook. We expect 1QFY26 visitorship to ease, as Ramadan in February is likely to offset the uplift from CNY-related traffic. For the rest of FY26, sustained marketing initiatives will remain key to supporting footfall. The Group intends to organise targeted promotional campaigns in conjunction with key festive periods such as Hari Merdeka, aligning these efforts with the Visit Malaysia 2026 campaign and the government’s domestic tourism tax relief incentives to drive incremental footfall during the holiday period.

 

Earnings Revision. Following the 4QFY25 earnings miss, we cut our FY26F/FY27F/FY28F earnings forecasts by 32%/32%/31%, respectively, to reflect lower visitorship growth expectations for Aquaria KLCC and Aquaria Phuket, and reduce our share of associate profit forecasts amid recent geopolitical tensions in Indonesia that could disrupt tourism flows and weigh on JAQS’ performance.

 

Valuation and Recommendation. Post-earnings revision, we maintain our BUY recommendation with a lower TP of RM0.37 (from RM0.51), now based on a lower 18x (from 20x) FY26F P/E applied to EPS of 2.0 sen, reflecting a more conservative valuation following the earnings downgrade.

 

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

Read more details in:

Disclaimer

The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.

Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

Apex Securities Berhad does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against Apex Securities Berhad. Apex Securities Berhad may from time to time have an interest in the company mentioned by this report. This report may not be reproduced, copied or circulated without the prior written approval of Apex Securities Berhad.

Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 3.878434 3.909825
EUR 4.590523 4.595422
CNY 0.567561 0.568180
HKD 0.495911 0.499417
SGD 3.065484 3.087199