PETALING JAYA: AGX Group Bhd
’s service agreement with VietJet marks a significant milestone for the group and signals its successful penetration into the Vietnamese aerospace logistics market.
It followed the recent service agreement with Sun Phu Quoc Airways, underscoring AGX’s growing foothold in Vietnam’s aviation ecosystem, Phillip Capital Research said.
Sun Phu Quoc operates five aircraft and plans to expand its fleet to 35 within the next two years, offering a clear trajectory of rising logistics demand.
As both VietJet and Sun Phu Quoc ramp up their flight operations, Vietnam is expected to become AGX’s third-largest revenue contributor, trailing only Malaysia and the Philippines.
Its entry into Vietnam also strengthened AGX’s regional network synergy, positioning the group to capture increasing cross-border maintenance, repair and operations and Aircraft on Ground logistics flows across South-East Asia.
Phillip Capital Research remained positive on AGX’s outlook.
Its earnings forecast has yet to factor in the potential upside from the Vietnam market.
Phillip Capital Research maintained its earnings forecasts and reiterated its “buy” rating at a target price of 85 sen a share.
This is based on a target 12 times price-to-earnings ratio multiple on 2026 earnings per share.
The key risks cited to the research house’s call include lower-than-expected freight demand, decline in freight rates and loss of customers.
