Selective Opportunities Emerge Across Fundamentals, Funding, and Technicals

Capital A Restructures Aviation Operations, Set to Exit PN17 with RM3 Billion AAAGL Disposal

ISF Group’s steady fundamentals, AirAsia X’s fully subscribed placement, and emerging technical rebounds in Chemlite and Optimax highlight selective opportunities amid a market favoring earnings visibility and momentum-driven trades.

ISF Group Bhd continues to position itself as a steady industrial player, anchored by its end-to-end piping solutions spanning supply, installation, maintenance, and repair. With exposure across industrial, data centre, residential, commercial, and institutional segments, the Group benefits from diversified demand and recurring income streams.

Its strategy of expanding capabilities and execution efficiency supports long-term competitiveness, justifying a fair value of RM0.41 based on a conservative 14x FY26F PER, notably below the sector benchmark.

Funding Opportunities

Meanwhile, AirAsia X has cleared a major overhang by completing its RM1bn private placement at RM1.65 per share, fully subscribed by a strong mix of investors. This milestone effectively unlocks the final stage of its corporate restructuring, including the acquisition of AirAsia Aviation Group.

With funding risk removed and the merged entity taking shape, earnings visibility improves, supporting an Outperform view with an ex-all target price of RM2.15.

On the technical front, Chemlite Innovation and Optimax Holdings are both showing early signs of trend reversals following recent pullbacks. Improving momentum suggests upside potential if key resistance levels are breached, though clear support levels remain critical for risk management.

Overall, the setup favors selective positioning, balancing solid fundamentals, completed funding catalysts, and improving technical signals.

Source: Public Investment Bank

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