CAPITALA (5099) - CAPITAL A BERHAD IPO Prospectus

Pluck something out of the air...

Qrts Revenue..Aviation Group..Revenue of RM4.5b 15% YoY and EBITDA Rm577M supported by strong travel demand,lower fuel price and stronger Ringgit vs USD.
This is achieved with 20 aircrafts still on the ground including these aircrafts, EBITDA by RM195M.

Next..

1 week ago

Pluch something from capA AGM minutes:

The majority of the liabilities of Aviation/AAX are lease liabilities of RM20 billion that will be repaid over the tenure of lease ranging from 12 to 18 years.
Current lease liabilities of RM5 billion represent lease payment due within 12 months and will be serviced by operating cash flow for the next 12 months.
Aviation is expected to generate positive cash flow to service its liabilities going forward, that is supported by valuation of both AAB and AAAGL under the DCF method.

So the question is with EBITDA Rm577M is that enough to pay lease payment due to lessors for the lease planes?

By the way as at 30/9/2024
RM'000
Current trade and other payables 4,635,016
Current borrowing 1,095,947
Current portion of long term debentures 290,261
Current lease liabilities 3,467,211
And etc

1 week ago

My pal flew over last weekend. She told me that the the airports are jammed with travellers and AA flights are fully loaded going out n coming back..Busiest travel season for yearend.

1 week ago

If you only take care of the top line with millions of cheap sales promotions and collected sales in advance of over RM 2 billion+

Come Q4 result what will be the revenue, EBITDA, PBT, PAT, operation cash flow and financing cashflow.

As as 31/9/2024
Cash flow from financing activities
RM '000
Proceed from borrowings 1,551,768
Repayment of borrowings (524,519)
Repayment of lease liabilities (2,621,956)

So still borrowing addition RM 1billion+ to get the operation running.

As what about BOD reply in EGM minutes?
Current lease liabilities of RM5 billion represent lease payment due within 12 months and will be serviced by operating cash flow for the next 12 months.

1 week ago

The statement is wrong, AAX has not bailout Cap A in this acquisition but Cap A injected AA (huge value asset) into AAX.

AAX take over AA debt become its own, and share swap with Cap A to "buy" AA, so call buy AA but no cash actually involved, it merely got liabilities transfer and share swap.

As for borrowings and leases, overall net effect is still repaid 1.5b loan in cashflow statement.

1 week ago

Referring
https://theedgemalaysia.com/node/727957
Capital A can exit PN17 before branding biz carve-out, says Fernandes
The proposed RM6.68 billion disposal of AirAsia Bhd and AirAsia Aviation Group Ltd to AAX will lead to a pro forma gain of over RM18 billion when the transfer of accumulated losses in the aviation business is included, according to Capital A

Isn't above sound like and look like a bailout?

1 week ago

By the way the correct statement is net cash used in financing activities

As as 31/9/2024
Cash flow from financing activities
RM '000
Proceed from borrowings 1,551,768
Repayment of borrowings (524,519)
Repayment of lease liabilities (2,621,956)
Net cash used in financing activities (1,594,707)

1 week ago

BLee

“Metaverse >..Looking at Focus Dynamics (stock code 0116), they announced a share reduction of RM126.8 million, and now it's trading at just RM0.02 and interestingly, Focus Dynamics used to announce big-name shareholders like Morgan Stanley, with an address in 1585 Broadway, New York, but it remains an unsolved mystery why a global investment bank would invest in a company trading at 2 cents which involved in share reduction exercises…”

Interesting mystery?? Let's compare the two Capital Reduction CR (NOT share reduction?).
The comparison will be biased toward Focus Dynamic base on latest Focus Dynamic announcement at referenced link: https://www.klsescreener.com/v2/announcements/view/8546821

‘1. “The Proposed Capital Reduction entails the reduction of up to RM126,800,000 of the issued share capital of the Company pursuant to Section 117 of the Act via the cancellation of the Company’s issued share capital which is lost and unrepresented by available assets. The corresponding credit of up to RM126,800,000 arising from such cancellation will be used to setoff against the accumulated losses of the Company as permitted by the relevant and applicable laws, the ACE Market Listing Requirements of Bursa Malaysia Securities Berhad as well as the Company’s Constitution.”
After the CR, the accumulated losses will be RM398.692million. The losses “ Included RM389.13 million arose from the initial recognition of warrant reserve in financial year ended (“FYE”) 31 December 2020.” The warrant reserve will ‘disappear’ after 26 Nov., 2025, the warrant maturity date. Will wait for the said date…as The edge article silent on this.
For CapA, I reserve my comment as both are in different leagues…

‘2. “The Proposed Capital Reduction will enable the Company to reduce its accumulated losses to more appropriately reflect the value of the underlying assets and financial position of the Company and the Group.”
One is under PN17 and the other NOT. CR for Focus Dynamic could be beneficially over a long period, reserved comments for CapA. Both businesses are affected by C19 pandemic; both are on the recovering path…to be fair, CapA has its own niche market, Focus Dynamic don't have.

‘3. On the trading price, Focus Dynamic is trading at P/B of 1.16, whereas CapA is at -0.63. How to compare??

Now comes the mystery part; as at 8 Dec.,2023 Morgan Stanley held 615,446,638 Focus Dynamic shares representing 9.658% of NOSH. When is it acquired?
Before, passed the 5% substantial holding requirements for public reporting, “Increase of 355,780,638 in shares held in respect of which Morgan Stanley may exercise its right to rehypothecate or dispose of on 27 December 2021.” (Rehypothecation is the practice where banks, brokers, or individuals use collateral that they do not own to help finance assets. Previously pledged collateral is used as collateral for a new loan, creating a leveraging cycle that promotes profitability but increases default risk.)
I view this CR for Focus Dynamic optimistically, bought at 2 sen after the announcement; willing to hold until Warrants maturity date around in a year. Happy weekend, Trading and TradeAtYourOwnRisk.

1 week ago

Net impact of financing cashflow is repaid loan, so it is not wrong.

In the nutshell, do you think it is a bailout or an asset injection ?

Bailout = I give you a chunk of money to save your company.
Asset injection = Without incurring any MONEY, assets are being injected into the company as share capital. Example: Sunway injected Sunway Medical Center into Sunway REIT (a separate trust fund entity) as capital.

At the end, how we interpreted the structure, really depend on the angle we look at it.

1 week ago

If you insist that paying lease payment due/deferred is the same as repaying loans/borrowings then you are right.

You either inject money to bailout a company or if you can find buyer to buy your subsidiaries with total liabilities many billions over total assets then it is not a bailout but a smart move (transfered billions in net liabilities to other).

1 week ago

Anything U Wants To Know, Just Anything..
https://www.capitala.com/misc/3Q24-presentation-capitala.pdf

1 week ago

As reported by Maybank, please to see that Capital A and AAX is standing P9 and P20 in the Top 20 KLSE stocks bought by foreign investors in Nov 2024. Surely this FF see the value of this Airlines despite sizeable MYR3.1b outflow in November (Oct: -MYR1.77b, the largest since Mar 2020, at the start of COVID-19 pandemic lock-downs). Hence we are not alone believing in these two airlines.

Imagine what will happen if Capital is out of PN 17?

1 week ago

JrWarren Net impact of financing cashflow is repaid loan, so it is not wrong.

In the nutshell, do you think it is a bailout or an asset injection ?

Bailout = I give you a chunk of money to save your company.
Asset injection = Without incurring any MONEY, assets are being injected into the company as share capital. Example: Sunway injected Sunway Medical Center into Sunway REIT (a separate trust fund entity) as capital.

At the end, how we interpreted the structure, really depend on the angle we look at it.
09/12/2024 8:58 AM

Thanks Jr for your insights...

This is Mabel understanding..

In a nutshell, a bailout involves providing a chunk of money to save a company like G provide money to MAS and FGV to save the company, while an asset injection involves injecting assets into the company as share capital without incurring any money like Sunway injected Sunway Medical Center into Sunway REIT as capital.

Capital injections can be done in various ways, such as:
Equity Injection: Investors provide capital in exchange for equity or shares in the company.
Debt Injection: Capital is provided in the form of loans or debt instruments.
Asset Injection: Physical or intangible assets are injected into the company as share capital.

Mabel view the disposal of Capital A's aviation business to AirAsia X (AAX) can be considered a strategic move rather than a traditional asset injection. In this case, Capital A is transferring its aviation business to AAX to create a more focused aviation entity. This move allows both companies to concentrate on their core strengths and growth opportunities.

While it involves the transfer of assets, it is more about restructuring and streamlining operations rather than injecting assets into a company as share capital without incurring money. It's a strategic realignment to unlock greater value for shareholders.

That’s why TF is really a True Magician.

Meow

1 week ago

New Co of AAG was old news because taking longer time in the process., now AAX will directly do the share swap with Capital A to acquire AA.

A pro-forma accounts of post-restructure exercise is available, but clearly you dont do your homework. That why you cant see the whole picture and have no idea what happen to AA's billions of lease agreement, while myself and other stakeholders who studied the report, already know what will happen and react to it.

Despite I dont like the schedule highlighted by Tony keep on delay, but these dates have becoming a reference that potential upside may come. Not sure Tony will throw who out of the Genting bus, but I am sure Tony rewarded a lot stakeholders AA ticket for free if you owned this counter. A free flight ticket to Japan is worth much than a Genting bus ticket.

Dont you agree, Mable? You get free family tickets to Japan, Korea , Thailand and Australia from Tony?

1 week ago

One thing I dont like is BigPay, after corporate exercise, Cap A no longer majority owner of AA or AAX , so Any discount incurred on selling AA / AAX ticket must be compensated by AA & AAX to BigPay. Else we shall question this on AGM under the conflict of interest.

1 week ago

I like Almaty, Kazakhstan...lovely place.

1 week ago

The Fed will cuts interest rate when meeting on Dec 17-18.

1 week ago

Not sure you invested in this counter or not, if you comment here with empty hand, please read the latest news to avoid mislead the i3 reader.
If you hold this counter without latest news, I wish you good luck and hopefully you are not paying too much tuition fee for this lesson.

1 week ago

JrWarren ...but I am sure Tony rewarded a lot stakeholders AA ticket for free if you owned this counter. A free flight ticket to Japan is worth much than a Genting bus ticket.

Dont you agree, Mable? You get free family tickets to Japan, Korea , Thailand and Australia from Tony?
09/12/2024 4:38 PM

Absolutely JrWarren..

AirAsia did provide bonuses to its shareholders before the COVID-19 pandemic. In 2019, AirAsia declared a special dividend of 90 sen per share. Additionally, in 2018, AirAsia announced a special dividend of 40 sen per share.

Haha lot's of Free tickets to travel indeed....

Hoping for another repeat once PN17 is out of the way...

Meow Meow Meow

1 week ago

IshraaqNor

Mula beratur di 98 sen utk kumpul lagi

1 week ago

The_JQuestion

nvr a cup of tea why give ur TP from a non existent fund in malaysia :))
0.6 idk when was that ? sslee , maybe dreaming for it to drop to that level ... same said to AAX , same doubt , same attacks on Tony
if he listened , he would have lost. A fighter will FIGHT on !! meanwhile collecting my int from LA easily .... how many percent for 4 years ... 32 %? on top capital gain ... smart investors know . payout on 26 dec after xmas , late xmas gift from tony :)) maybe an even sweeter one before xmas?? its stuck at doji line for DAYS ... waitingggg

1.00 MYR
+0.18 (21.34%)year to date

1 week ago

Congrats JQ. You did Great!.

This counter has given Mabel countless orgasms too as Mabel has been in and out of this counter.

Previous average trade was +8.23 % (excluding Dividend)

Now holding at + 14%

In 2019, AirAsia declared a special dividend of 90 sen per share. Additionally, in 2018, AirAsia announced a special dividend of 40 sen per share...Yum Yum

...and lot's of Free tickets to travel too..

Hoping for another repeat once PN17 is out of the way...

Meow Meow Meow

1 week ago

Perhaps the Mabel biggest motivation with Capital A is to be part of the success story for a Complete Turnaround of one of the 2 National Treasures (Capital A and Sapnrg)...

Next key milestones:
○ 4Q24: High court approval of transaction
○ 1Q25: Completion of proposed disposal execution

Regulation Plan - Oct 2024: Announcement of regularization plan - capital reduction proposal of up to RM6 billion

● Next key milestones:
○ 4Q24: Circular submission and Bursa approval of regularization plan
○ 1Q25: Shareholders and high court approval
○ 1H25: PN17 status to be lifted upon fulfilling all Bursa’s requirement, incl demonstrating 2 qtr profitability

To Our Success !

Meow Meow Meow

1 week ago

*Shareholder Benefits*

Share Distribution: Capital A shareholders will receive 400 shares of AAX for every 1,000 shares of Capital A, potentially increasing their investment value.
Dividend Resumption: With improved financial health, Capital A might resume dividend payments, benefiting its shareholders.

*Growth Prospects*

Asia Digital Engineering (ADE): Tony Fernandes plans to grow ADE and list it, which could unlock further value for investors.

US Listing: Listing Capital A International in the US could enhance its global presence and attract more investors.

MOVE: The digital and logistics arm, MOVE, has significant growth potential and could have a substantial impact on the company’s future.

Teleport’s Growth Potential : Teleport, the logistics arm of Capital A, has shown promising growth. Its focus on expanding logistics solutions across ASEAN with enhanced cargo operations and cross-border services positions it well for substantial growth.

Overall, these strategic moves indicate a robust plan for Capital A’s transformation and growth, potentially offering substantial returns for its investors and of course to Malaysia!

What more can Mabel ask?

Meow Meow Meow

1 week ago

metaverse

It's quite puzzling why CapA can't just merge directly with AXX but instead has to go through all the trouble to create a new company named AAG (AirAsia Group). The transfer of assets (and debts) from CapA to AAG isn't as straightforward as transferring from one milo tin to another milo tin due to complex legal issues concerning loan/lease transfers.

So it is similar to the proposal involving CAPI (Nasdaq SPAC), this AAG might or might not work so this scenario is perfectly in line with NOMURA research SELL target price of RM0.6 but no harm to refresh the old news dated 2015 and see whether it is still relevant today:

Industry sources who have seen the report (Hong Kong-based GMT Research) say it makes some serious allegations about the company’s financial health that AirAsia boosted profits by 39% through related-party transactions, a practice that is no longer sustainable and is putting the airline at risk of default.

https://theedgemalaysia.com/article/airasia-fends-short-selling

1 week ago

As reported by Maybank, please to see that Capital A and AAX is standing P9 and P20 in the Top 20 KLSE stocks bought by foreign investors in Nov 2024. Surely this FF see the value of this Airlines despite sizeable MYR3.1b outflow in November (Oct: -MYR1.77b, the largest since Mar 2020, at the start of COVID-19 pandemic lock-downs). Hence we are not alone believing in these two airlines.

Capital A is on target to get out of PN 17. Price refuse to come down to Mabel's waiting price since FF believes in our Magician...

So nice....

1 week ago

Dow Jones

Dow Jones Industrial Average

44,401.93

-240.59

0.53%

Nasdaq

NASDAQ Composite

19,736.69

-123.08

0.61%

1 week ago

Dow Jones

Dow Jones Industrial Average

44,401.93

-240.59

0.53%

Nasdaq

NASDAQ Composite

19,736.69

-123.08

0.61%

1 week ago

Wasim73

0.85 soon

1 week ago

metaverse dear,

Previously you share some scary scenario about Pchem and YTL Power. Thanks to your perspective Mabel was able to collect both of them at a real bargain price when both stock retrace. Now just like Capital A, all these 3 Musketeers have been giving Mabel endless orgasm lately..

Unlike Capital A, both PCHEM and YTL Power suffered Forex Losses. Hence, Mabel is looking forward to have them written back next cuming quarters..

Today PCHEM (Re-enter at 4.53) rocket to the roof while YTL Power (Re-enter RM 2.88) climbs like no body business

Even our common interest Sunway is also looking great..

Meow..

Stock: [YTLPOWR]: YTL POWER INTERNATIONAL BHD

1 week ago | Report Abuse

CapitalCraftsman Congrats to those who got reload it at the price below RM3 👏
27/11/2024 5:15 PM

Thank you CC,

Managed to re-enter YTP Power at RM 2.89 and RM 2.88 after locking profit in September 2024...

Also managed to re-enter YTL at RM 1.760 after locking profits on the ex date to secured the handsome Dividends..

So apy with these two re-entry, all thanks to Short Selling who make it possible..

So far these two handsome Princes have been a darling on Mabel's P&L...

To Our Success !

Meow Meow Meow

Stock: [PCHEM]: PETRONAS CHEMICALS GROUP BHD

1 week ago | Report Abuse

Today PCHEM breached both support level :
Support 1 at RM 4.74
Support 2 at RM 4.63

Anyway, Mabel starts to re-enter PCHEM after it breaches both support level at RM 4.53 conservatively as the QR is expected to be announced on the 28th November.

With PCHEM EPS of MYR 0.25 (as per the latest data) and the PE ratio of 19.02:

PCHEM Fair Value Price = 0.25 ×19.02 = RM 4.76

This means that Mabel has collected at a good price given today’s closing prices is MYR 4.55 which is slightly under the above fair value...

Stock: [SUNWAY]: SUNWAY BERHAD

23 hours ago | Report Abuse

Great metaverse...

Mabel's current average is RM 4.388 after few round locking profits. Hoping to add more ..

This counter has given Mabel 33.3% gain from previous trade. Very solid counter..

To Our Success !

Meow

1 week ago

The Power Of Positivities..

https://www.scmp.com/video/asia/3287718/how-airasias-tony-fernandes-steering-his-budget-airline-toward-post-pandemic-recovery

1 week ago

Oil will be lower in 2025..simply too much oil in the mkt.

1 week ago

Wasim73

ship is sinking again!

1 week ago

Thank you so much short sellers...

Managed to top up today at 98 sen...so apy...

Price is up to 99 sen...hihihi

1 week ago

Yes Paul with Bursa still having period, Capital A finally secum to the short sellers and come down to Mabel's waiting price. Mabel and her Team managed to load up. Now the Price is up again...

This how we plan to steer our budget airline toward post-pandemic recovery

Meow Meow Meow

https://www.scmp.com/video/asia/3287718/how-airasias-tony-fernandes-steering-his-budget-airline-toward-post-pandemic-recovery

1 week ago

Make sure U jump with a Parachute.

MAAG!

1 week ago

Yes Sir...Absolutely!

Those who cut lost just because PCHEM nosedived a few weeks ago must have regretted it so much...

Stock: [PCHEM]: PETRONAS CHEMICALS GROUP BHD

1 minute ago | Report Abuse

Yes Lah..

Date Open Price Target Price Upside/Downside Price Call Source News
21/11/2024 4.55 5.53 +0.98 (21.54%) BUY TA (Cumming)
21/11/2024 4.57 4.89 +0.32 (7.00%) HOLD MIDF (Smashed)
21/11/2024 4.55 5.00 +0.45 (9.89%) HOLD KENANGA (Smashed)
21/11/2024 4.55 6.00 +1.45 (31.87%) BUY BIMB (Cumming)

1 week ago

Dow Jones

Dow Jones Industrial Average

44,247.83

-154.10

0.34%

Nasdaq

NASDAQ Composite

19,687.24

-49.44

0.25%

1 week ago

So steady...happy to collect more yesterday..

GENEVA – The number of air travellers around the world is expected to surpass five billion for the first time in 2025 as travel becomes increasingly affordable, said the International Air Transport Association (Iata).

Some 5.22 billion passengers are expected to take to the skies in the coming year, a 6.7 per cent increase from the 4.89 billion forecast for 2024, the airline industry body said at its global media day in Geneva, Switzerland, on Dec 10.

https://www.straitstimes.com/world/number-of-air-travellers-to-cross-5-billion-for-first-time-in-2025-average-fares-to-drop-iata?utm_source=emarsys&utm_medium=email&utm_campaign=ST_Newsletter_AM&utm_term=Number+of+air+travellers+to+cross+5+billion+for+first+time+in+2025%3B+average+fares+to+drop%3A+Iata++&utm_content=11%2F12%2F2024

1 week ago

Despite Bursa still having an ever lasting period, Capital continue to breaks new level. Very please with yesterday’s collection when it retrace to 98 sen. Now it’s back between RM 1- RM 1.02. Imagine what it will be when we all get out of PN 17 with the number of air travellers around the world is expected to surpass five billion for the first time in 2025 as travel becomes increasingly affordable. Some 5.22 billion passengers are expected to take to the skies in the coming year, a 6.7 per cent increase from the 4.89 billion forecast for 2024

Say what you want about AirAsia and Tony Fernandes, but it’s hard to deny that he’s built a company with solid branding and a strong company culture.

He’s grown Capital A’s portfolio from one airline brand to span seven core verticals—aviation, logistics, engineering, aviation services, digital lifestyle services, fintech, and even brand management.

Tony Fernandes said these 5 things were AirAsia’s biggest assets for growth.

1. “The number one asset in your company is your staff.”
2. A firm belief in the saying “data is king”
3. A good, big pool of funds for branding
4. A will to disrupt
5. Innovation that comes in many forms

Please to see there is No Bikins on his lists. Syabas Tony, you are pretty clear where you are taking us...

https://vulcanpost.com/877704/tony-fernandes-airasia-biggest-assets-business-growth-tips/

Meow Meow Meow

6 days ago

Day Day Good News...

https://www.ch-aviation.com/news/147989-airasia-eyes-100-strong-regional-jet-order

6 days ago

https://www.malaymail.com/news/malaysia/2024/12/12/transport-minister-says-new-terminals-fourth-runway-for-klia-on-the-cards/159603

5 days ago

HaHassan

Lihat sama ada Cap A boleh singgah teguh di RM1 sana tak

5 days ago

https://www.thestar.com.my/business/business-news/2024/12/12/sapura-energy039s-3q-bottomline-hit-by-forex-losses

2023 Forex Gain was 270m but this Qr forex loss is 213m But when you are working with percentage, it looks horrible 5000% Loss!

Now you know why Mabel said Tony Fernandes is truly a Magician!

5 days ago

Income

Under value according to Kim Chee

4 days ago

Income

Tony Fernandes said these 6 things were AirAsia’s biggest assets for growth.

1. “The number one asset in your company is your staff.”
2. A firm belief in the saying “data is king”
3. A good, big pool of funds for branding
4. A will to disrupt
5. Innovation that comes in many forms
6. A strong connection to foreign spouse。

4 days ago