KLCCP Earnings Poised for Growth Amid Tourism Surge & Suria KLCC Expansion

Malaysia’s tourism industry is set for a strong rebound in 2025 and beyond, fueled by strategic initiatives such as Malaysia’s Asean chairmanship and Visit Malaysia 2026 promotional campaigns. This positive outlook is expected to boost KLCCP Stapled Group’s revenue, particularly in its hotel and retail segments.

According to Hong Leong Investment Bank (HLIB) Research, the expected rise in tourist arrivals will directly benefit KLCCP’s hospitality and retail assets, driving higher foot traffic at Suria KLCC and improving occupancy rates in its hotel portfolio.

Key Growth Drivers for KLCCP Stapled Group in 2025-2026

🏨 1. Improved Hotel Occupancy Rates
✔ KLCCP’s hotels currently operate at a 58% occupancy rate.
✔ Expected higher tourist arrivals will drive increased bookings.
✔ Malaysia’s role as ASEAN Chair in 2025 will bring more business travelers.

🛍️ 2. Higher Footfall at Suria KLCC
✔ KLCCP’s 40% stake in Suria KLCC, acquired in 2Q2024, will boost full-year earnings in 2025.
✔ Increased retail traffic and consumer spending due to rising tourism.

💰 3. Strong Revenue Growth Despite Higher Finance Costs
✔ KLCCP reported 9.15% net profit growth, reaching RM1.02 billion in FY2024 (vs RM931.29 million in FY2023).
✔ Revenue rose 5.66% YoY to RM1.71 billion from RM1.62 billion.
✔ Earnings expansion partially offset by increased finance costs from funding the Suria KLCC acquisition.

Analysts’ Take on KLCCP’s Financial Outlook

📊 RHB Research Adjusts Earnings Projections
📉 Slight Downward Revision: RHB Research cut earnings forecasts for FY2025 (-1.5%) and FY2026 (-1%) due to cost assumptions.
📈 New FY2027 Estimate: Earnings projected at RM900 million.
🔄 Rental Reversion Updates: Higher long-term rental projections for office and retail properties prompted an increase in KLCCP’s target price.

📢 What This Means for Investors:
KLCCP is positioned for long-term growth, driven by:
✔ Malaysia’s improving tourism sector
✔ Suria KLCC’s full-year earnings contribution
✔ Strong retail & hospitality segment performance

However, investors should note higher borrowing costs, which may moderate profit expansion in the near term.

Conclusion: Is KLCCP a Strong Investment in 2025?

KLCCP Stapled Group stands to benefit significantly from Malaysia’s tourism boom and the expansion of Suria KLCC. While higher finance costs may temper short-term profits, the long-term growth trajectory remains positive, especially with Malaysia’s ASEAN leadership and Visit Malaysia 2026 campaign driving demand.

📌 Investor Takeaway:
✔ Strong retail & hospitality outlook
✔ Higher earnings from Suria KLCC stake
✔ Tourism-driven growth supports long-term potential

💡 Bottom Line: Despite near-term financial challenges, KLCCP’s position as a key player in Malaysia’s premium retail and hospitality space makes it a solid long-term investment opportunity. 🚀