AGX Group Bhd, a Malaysian logistics and aerospace logistics provider, has garnered a positive outlook from Apex Securities, which set a 52-week target price of 74 sen. The company is expected to see a compound annual growth rate of 30.7% in net profit from fiscal year 2024 to 2027, driven by a strategic shift towards higher-margin air freight and aerospace logistics, alongside increased contributions from its associate, All-Link.
Industry observers highlight that AGX is positioned to benefit significantly from an upcoming regional aviation maintenance, repair, and operations (MRO) supercycle. This optimism is supported by a landmark three-year contract with Malaysia Airlines Bhd, starting in late 2025. As global aircraft delivery delays continue, airlines are likely to retain and maintain older aircraft, boosting demand for specialized aerospace logistics services provided by companies like AGX.
Furthermore, the recovery in Malaysian passenger traffic and operational ramp-up efforts are expected to lead to a substantial earnings increase starting in the second quarter of 2026. Founded in 2004 and listed on the ACE Market since February 2024, AGX has grown from a single-office freight forwarder into a regional player with operations in nine countries, overseeing 28 offices and 15 warehouses.
