AU
UK
CA
US
IND
NZ
This report is an updated version of the report published on 27 November 2025 at 11:57 AM AEDT
Company Overview
Company Overview: Alliance Aviation Services Limited (ASX: AQZ) is an Australia-based company, which is a provider of contract, charter and allied aviation and maintenance services. It also provides specialized aviation services to airlines and clients, including aircraft wet leasing, dry leasing, airport management, aircraft trading, parts sales, engine leasing and engineering services. Rural Funds Group (ASX: RFF) is an Australia-based real estate investment trust (REIT). The company owns a diversified portfolio of agricultural assets that are leased predominantly to corporate agricultural operators. It is primarily engaged in the development and leasing of agricultural properties and equipment. Kalkine’s Sector Report covers the Investment Summary, Sector Overview & Supporting Catalysts, Data Insights & Analysis, Financial Metrics, Financial Commentary, Risks, Outlook, Technical Analysis along with the Valuation, Target Price, and Recommendation on selected stocks.
Investment Summary
Sector Overview and Supporting Drivers
Australia’s transport sector underpins national economic activity by enabling the movement of people, goods and services across extensive urban and regional networks. The sector spans road, rail, aviation, maritime and logistics infrastructure, and is currently shaped by population growth, e-commerce expansion and heightened supply-chain requirements. Investment is being driven by government-funded upgrades, decarbonisation initiatives and digitalisation efforts to improve efficiency and safety. However, operators face cost inflation, labour shortages, regulatory pressures and the need to transition to lower-emission fleets. Overall, the sector remains resilient, with long-term demand supported by trade volumes, urbanisation and ongoing infrastructure development across Australia.
Australia’s real estate sector is influenced by population growth, migration trends, interest-rate settings and broader economic conditions. Residential markets remain supported by chronic housing undersupply, tight rental vacancies and strong household formation, though elevated borrowing costs continue to affect affordability and transaction volumes. Commercial property is experiencing a mixed environment: industrial assets benefit from e-commerce and logistics demand, while office markets face subdued leasing activity amid hybrid work trends. Retail property is stabilising, supported by resilient consumer spending in key locations. Across the sector, capital allocation is increasingly shaped by sustainability requirements, construction cost pressures and evolving occupier preferences.
Sector Catalysts
Index Performance
Investment theme and stocks under discussion (AQZ, RFF)
After understanding the sectors, let us now look at two companies from the Transportation and Real Estate sectors listed on the ASX. The price potential of the companies under discussion have been analysed based on EV/Sales and Price/Book based relative valuation methods, respectively.
1. ASX: AQZ (Alliance Aviation Services Limited)
(Recommendation: ‘Speculative Buy’ at AUD 1.295; Potential Upside: Low Double-Digit; MCap: AUD 206.91mn)
AQZ is an Australia-based company, which is a provider of contract, charter and allied aviation and maintenance services. It also provides specialized aviation services to airlines and clients, including aircraft wet leasing, dry leasing, airport management, aircraft trading, parts sales, engine leasing and engineering services.
The stock has corrected ~51.37% in the last one month, and over the past six months, it has declined by ~49.83%. The stock has a 52-week low and 52-week high of AUD 1.115 and AUD 2.980, respectively and is currently trading below the 52-week high-low average. AQZ was last covered in a report dated ‘30 October 2025’.
2. ASX: RFF (Rural Funds Group)
(Recommendation: ‘Hold’ at AUD 1.942; Potential Upside: Low Single-Digit; MCap: AUD 759.95mn)
RFF is an Australia-based real estate investment trust (REIT). The company owns a diversified portfolio of agricultural assets that are leased predominantly to corporate agricultural operators. It is primarily engaged in the development and leasing of agricultural properties and equipment.
The stock has witnessed a decline of ~1.47% in last one month, and over the past 6 months, it has increased by ~10.39%. The stock has a 52-week low and 52-week high of AUD 1.587 and AUD 2.030, respectively and is currently trading above the 52-week high-low average. RFF was last covered in a report dated ‘31 July 2025’.
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 27 November 2025. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual’s appetite for upside potential, risks, holding duration, and any previous holdings. An ‘Exit’ from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.
Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Technical Indicators Defined: -
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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Past performance is not a reliable indicator of future performance.
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