PETALING JAYA: HI Mobility Bhd
is set for earnings growth in the coming quarters, on the back of its RM255mil unbilled order book, accretive acquisitions, and robust tender pipeline, according to CIMB Research.
In a note to clients, it said it expects the group’s new commercial vehicle manufacturing, assembly, and distribution segment, following the completion of its Acacia and Handal BCM acquisitions, to be a growth driver for its financial year ending January 2027 (FY27).
It anticipates positive synergies from the integration of the acquired companies, which should enhance HI Mobility’s ability to bid for integrated electric vehicle (EV) bus tenders that require end-to-end delivery.
For the first quarter of FY27 (1Q27), the new segment notably contributed 29.3% of total group revenue, driving its 51.2% year-on-year (y-o-y) revenue rise to RM111.5mil.
“Earnings visibility for the division remains strong over the coming quarters, supported by the scheduled delivery of up to 250 EV buses over the next 12 months,” CIMB Research said.
“This forms part of Prasarana Malaysia Bhd’s fleet modernisation programme to accelerate EV adoption, particularly amid elevated fuel costs.”
Meanwhile, revenue from the group’s scheduled bus services segment grew by 6.5% y-o-y in 1Q27, supported by new intra-city contract awards under BAS Muafakat Johor.
The research house said it sees the Johor-Singapore Rapid Transit System (RTS) Link as a net positive for HI Mobility’s ridership growth, adding meaningful first and last-mile connectivity opportunities while striving to continously improve its cross-border bus efficiency.
“We estimate RTS feeder route contracts could be worth approximately RM190mil annually.
“We believe HI Mobility is well positioned to participate in the rollout, supported by its proven execution track record,” it added.
CIMB Research said the company’s 1Q27 results met its as well as consensus FY27 estimates.
The group’s net profit grew by 29.4% y-o-y to RM16.3mil, while core net profit, after adjusting for non-recurring items such as net foreign-exchange losses and gain on asset disposal, grew by 35% y-o-y to RM17.5mil.
The group has also declared an interim dividend per share of one sen, which is in line with the research house’s expectations.
CIMB Research further highlighted that the group’s unbilled order book, standing at RM255mil as of end-April 2026, is expected to provide resilient earnings visibility over its coming financial periods.
It has maintained its “buy” rating on HI Mobility, as well as its target price (TP) of RM2.80 per share.
The TP was derived from a multiple of 17.8 times 2027 price-to-earnings ratio, representing a 20% premium to the public transport sector mean of 14.9 times.
