PETALING JAYA: SMRT Holdings Bhd
is poised for a strong financial year 2025 (FY25), thanks to robust deployment schedules anticipated from key clients.
According to Hong Leong Investment Bank (HLIB) Research, this will lead to a series of sequential quarter-on-quarter (q-o-q) growth throughout FY25.
The group provides end-to-end wireless network connectivity solutions.
“SMRT started FY25 on a strong note, with managed sites in the first quarter increasing by 833 to a record-high of 26,300.
“This growth was higher than the previous quarter’s rise of 782, but lower than the same period last year, which saw an addition of 1,300,” it said.
“In terms of the sales mix, one-off projects accounted for 37% of total sales, with the remaining portion derived from managed services,” it said.
The group is also actively exploring mergers and acquisitions (M&A) to facilitate horizontal expansion.
The research house said management emphasised that any potential acquisition must complement its existing business, enabling horizontal expansion to penetrate new segments or deepen engagement with existing customers.
“Several potential targets have been identified, and the group has initiated preliminary discussions with some of these parties,” added HLIB Research.
The research house maintained its “buy” rating on SMRT, with an unchanged target price of RM2.19 per share, based on a price-earnings multiple of 30 times applied to FY26 forecast earnings.
