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After the transfer, Capital A will continue running four businesses, including Teleport for logistics, Santan for its food and beverage (F&B) business, AirAsia Big Pay for its digital services arm and Asia Digital Engineering (ADE) with a focus on aircraft maintenance, repair and operations services.
Chief executive officer Tan Sri Tony Fernandes said the move was part of a comprehensive consolidation plan to transfer all short-haul businesses in Malaysia, Thailand, Indonesia, the Philippines and Cambodia to its mid-haul budget carrier AAX.
digital business only amounted to less than 3% of the group total earnings while aviation business amounting to 87%....teleport being hyped up as the next big thing, sufffered losses instead... santan, how many can sell? now the most valuable asset after restructure is. SuperApp, i use it to book air ticket, but for car ride, Grab is more popular. . order food, Foodpanda is more popular..
@Jason Ngu Been lurking around here for quite a bit and seeing the inaccuracies in your comments gave me the urge to comment here. For starters, 3Q2022 breakdown in revenue by business line shows that the non-core businesses made up roughly 11% (RM300m) of total revenue. For 3Q2023, it is slightly more than 15% (RM644m) if we include aviation services (ADE, Santan, etc.) into the pie. As you can see the pie has grown by roughly 4% after a year but more impressively is that revenue has grown by more than 100% for their non-core businesses. If we look at their non-core businesses EBITDA, for 3Q2022 it is at RM7.6m while in 3Q2023 it is RM66.3m growing multiple folds, bear in mind companies like Grab haven't even been able to generate a positive unadjusted EBITDA since inception.
Also, another thing that I am really curious about is how did you arrive to a TP of RM0.2 for Capital A post-acquisition by AAX? How did you value them? Did you use DCF, forward P/E or you are just pulling figures?
TLDR, I think Capital A's non-core businesses are undervalued, for context Grab made a revenue of approximately RM3b during the year of their IPO with a negative EBITDA of RM6.6b, despite that they are still valued at about RM176b during IPO. Capital A's non-core business revenue extrapolated for FY2024 using 3Q2023 data is about RM2.6b with RM265m positive EBITDA. Based on current trajectory, I don't think it is too surprising to see Capital A's non-core revenue grow to near RM3.5b in FY2024.
Don’t worry you just wait for Tony magic show. before 24th January.He said CapA and AAX will become one entity,CapA still own the aviation business ‘through’ AAX share.
