PETALING JAYA: Hong Leong Investment Bank (HLIB) Research has maintained its “buy” call on Internet of Things company SMRT Holdings Bhd
, saying that its management expects site deployment numbers in the upcoming quarter (ending March 31) to be similar to, if not surpass, those of the quarter ended Dec 31.
In a report to clients, the research house said this optimism is driven by strong deployment schedules, with Tenaga Nasional Bhd’s (TNB) site deployment expected to remain steady, while a faster pace is anticipated from Air Selangor.
“For calendar year 2025, management is guiding for sequential quarter-on-quarter growth throughout the year.
“With the commencement of the Regulatory Period 4 period, TNB’s higher approved capital expenditure is expected to lead to a stronger deployment pace for SMRT Holdings,” it said.
It said the group is actively exploring merger and acquisition opportunities to facilitate horizontal growth, enabling it to penetrate new market segments and strengthen relationships with customers.
In the report, HLIB Research said it had an unchanged target price of RM2.19 on the stock, as it ascribed a price-to-earnings multiple of 30 times for SMRT Holdings pegged to the financial year ending June 30, 2026 earnings.
The proliferation of managed site, post-deployment, will lead to a steadier growth in its recurring income base, it added.
