PETALING JAYA: Apex Securities Research is positive on HI Mobility Bhd
’s prospects given its sustained cross-border ridership growth and earnings visibility, supported by a RM360mil order book and capacity expansion.
In a note to clients, the research house forecasts the Johor-based bus service operator group’s core net profit to grow by 35.8%, 32.1% and 24.4% for the financial year 2027 (FY27), FY28 and FY29, respectively.
It pointed out that HI Mobility’s RM360mil unbilled order book provides clear revenue visibility over the next two to three years, underpinned by recurring, government-linked contracts that support stable and defensive earnings.
Apex Securities also described HI Mobility’s operation as a cross-border cash machine offering direct exposure to Johor-Singapore commuter flows.
This exposure is underpinned by wage differentials, regulatory barriers to entry and the Johor-Singapore Special Economic Zone (JS-SEZ)-driven economic integration, supporting sustained volume growth.
The research house added that the JS-SEZ is expected to structurally lift cross-border mobility, driven by investment inflows, job creation and increased workforce commuting.
“As a leading operator on the JB-Singapore corridor, HI Mobility is well-positioned to capture incremental passenger volumes and expand into dedicated workforce and industrial shuttle services, supporting visible and recurring volume growth,” Apex Securities noted.
In initiating coverage on HI Mobility, the research house has a “buy” call on the stock with a target price of RM2.73 per share.
Furthermore, it said HI Mobility’s stronger growth profile is underpinned by resilient cross-border commuter flows, high utilisation levels and scalable, volume-driven earnings.
