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.

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.

“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.

“However, the significantly higher finance costs from funding the Suria KLCC acquisition will capped earnings growth,” the firm said.

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.

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.

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.

Following adjustments to its long-term rental reversion assumptions for the office and retail segments, RHB Research has raised its target price for KLCCP.

Source: KLCCP Stapled Group to benefit from projected rise in tourist arrivals