Aquawalk Assigned 22% Upside IPO Price, Poised To Gain From Tourism Boom
Aquawalk Group Berhad, an aquarium operator and developer with a strong presence across Southeast Asia, is poised to benefit from the region’s tourism recovery, according to Malacca Securities.
In a research note, the brokerage projected a three-year compound annual growth rate (CAGR) of 4.7% for Aquawalk’s earnings, with core profit after tax (PAT) expected to rise to between RM36.3 million and RM41.8 million over the next three years. The growth will be underpinned by the upcoming Visit Malaysia 2026 (VM2026) campaign, new tourist attractions at its flagship Aquaria KLCC and Aquaria Phuket, and the construction of new aquaria in Kota Kinabalu and Java.
Malacca Securities has assigned a fair value of RM0.38 per share for Aquawalk, representing a potential 22.6% upside from its current share price of RM0.31. The valuation is based on a price-to-earnings (PE) multiple of 18 times pegged to FY2026 forecast earnings per share of 2.13 sen.
Strong Tourism Exposure and Strategic Locations
Founded in 2001, Aquawalk operates popular attractions such as Aquaria KLCC, Aquaria Phuket, and Jakarta Aquarium Safari (JAQS). Its aquaria are strategically located in high-traffic tourism areas including the Kuala Lumpur Convention Centre, Phuket, and Jakarta — offering strong visitor footfall and accessibility.
The company has allocated RM32.9 million from its IPO proceeds to upgrade and develop new attractions at Aquaria KLCC and Aquaria Phuket, initiatives expected to sustain and enhance visitor growth in the coming years.
Expansion into New Markets
Aquawalk is also planning regional expansion with two new aquaria — one in Kota Kinabalu, Sabah (targeted for completion in 2028) and another in Java, Indonesia (set for 2026). A total of RM56.9 million in IPO proceeds has been earmarked for these projects.
According to Statista data cited by Malacca Securities, the ASEAN tourism industry is expected to grow at a CAGR of 11.4% between 2025 and 2030, positioning Aquawalk as a key proxy to the region’s tourism boom.
High Entry Barriers Strengthen Competitive Edge
The research house noted that the aquarium industry carries high barriers to entry due to the large capital investment, specialised technical expertise, and long gestation periods involved. Aquawalk’s in-house capabilities through its subsidiary Aquablu Technologies, which handles aquarium design, development, and maintenance, give it a strong competitive advantage and economic moat that is difficult to replicate.
Boost from Budget 2026 and Visit Malaysia 2026
The company is also expected to benefit from tourism-friendly measures under Budget 2026, which includes a RM700 million allocation to promote the sector — of which RM500 million is dedicated to the VM2026 campaign.
Additionally, a special income tax relief of RM1,000 for entrance fees to local tourism centres and cultural programmes will help attract more domestic visitors, particularly to family-oriented destinations like Aquaria KLCC.
Leading Market Position
Aquaria KLCC remains Malaysia’s largest aquarium by revenue, commanding an estimated 50.7% market share, according to an IMR report. In Thailand and Indonesia, Aquaria Phuket and JAQS hold market shares of around 11%–15% and 14%–19%, respectively.
Malacca Securities expects Aquawalk’s market dominance to remain resilient and expand further, supported by the refurbishment of existing aquaria and the rollout of new developments in Sabah and Indonesia.
