HI Mobility Berhad - Cross-Border Cash Machine
Wed, 29-Apr-2026 07:47 am
by Team Coverage • Apex Research

Counter

HI (5335)

Target Price (RM)

2.73

Recommendation

Buy

  • HI offers direct exposure to Johor–Singapore commuter flows, underpinned by wage differentials, regulatory barriers to entry and JS-SEZ-driven economic integration, supporting sustained volume growth.

  • We forecast CNP to grow 35.8%/32.1%/24.4% for FY27F/28F/29F respectively, underpinned by (i) Sustained cross-border ridership growth, (ii) Earnings visibility supported by RM360m orderbook and (iii) Capacity expansion.

  • We initiate coverage on HI Mobility with a BUY call and a target price of RM2.73, based on a 14.0x P/E multiple applied to FY28F EPS of 19.5sen. We apply a 14.0x P/E multiple, at a premium to peers 11.0x but below the 3-year historical average Bursa Malaysia Transportation Index 16.6x.

 

Key Investment Highlights

 

Strong Earnings Visibility from RM360m Orderbook. HI Mobility’s RM360m unbilled orderbook provides clear revenue visibility over the next 2–3 years, underpinned by recurring, government-linked contracts, supporting stable and defensive earnings.

 

Digitalisation Driving Efficiency and Optionality. HI’s digital ecosystem, including ManjaLink and LUGO, enhances operational efficiency and enables data-driven optimisation of routes and fleet utilisation. Over time, its in-house platforms offer potential to scale into higher-margin, recurring SaaS-type income streams, supporting margin expansion and potential valuation re-rating.

 

JS-SEZ as a Structural Cross-Border Volume Catalyst. The Johor–Singapore Special Economic Zone (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.

 

Policy-Driven Shift Towards Public Transport Adoption. Malaysia’s public transport sector is supported by strong policy backing, with a 40% modal share target by 2030 (vs 20% currently). Initiatives under the NTMP and NETR are expected to accelerate adoption of mass transit, positioning HI to benefit from network expansion and structurally higher baseline ridership.

 

Johor as a Multi-Year Demand Engine. Johor’s transformation into a regional economic hub, supported by developments such as FCSFZ and the RTS Link, is expected to drive sustained growth in both domestic and cross-border travel demand. HI’s strong Johor footprint positions it to capture route expansion opportunities, reinforcing long-term earnings visibility.

 

Valuation & Recommendation. We initiate coverage on HI Mobility with a BUY call and a target price of RM2.73, based on a 14.0x P/E multiple applied to FY28F EPS of 19.5sen. We apply a 14.0x P/E multiple, at a premium to peers 11.0x but below the 3-year historical average Bursa Malaysia Transportation Index 16.6x, reflecting HI’s stronger growth profile, decent margins and regulated business model.

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Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 3.936314 3.967989
EUR 4.615974 4.625491
CNY 0.577616 0.578239
HKD 0.502266 0.506322
SGD 3.083269 3.108163