KUALA LUMPUR: Tourist arrivals are expected to grow this year and beyond, driven by initiatives like Malaysia’s Asean chairmanship and promotional campaigns leading up to Visit Malaysia 2026.<\/p>\n
HLIB Research said this is expected to benefit KLCCP Stapled Group’s hotel assets, which currently have a 58 per cent occupancy rate, and contribute to higher footfall at Suria KLCC.<\/p>\n
“Additionally, the full year contribution from the 40 per cent stake in Suria KLCC, acquired in the second quarter of 2024 (2Q24), will provide a boost to earnings.<\/p>\n
“However, the significantly higher finance costs from funding the Suria KLCC acquisition will capped earnings growth,” the firm said.<\/p>\n
KLCCP’s net profit rose by 9.15 per cent to RM1.02 billion for the financial year ended Dec 31, 2024 (FY24), up from RM931.29 million the previous year. <\/p>\n
Its revenue grew by 5.66 per cent to RM1.71 billion from RM1.62 billion, driven by strong market performance and a strategic focus. <\/p>\n
RHB Research has revised down the group’s earnings forecasts for financial years 2025 and 2026 by 1.5 per cent and 1 per cent, respectively, after adjusting cost assumptions, while introducing a financial year 2027 (FY27) earnings estimate of RM900 million. <\/p>\n
Following adjustments to its long-term rental reversion assumptions for the office and retail segments, RHB Research has raised its target price for KLCCP.<\/p>\n