IPO : Go Hub Capital Berhad - Public transport IT solutions specialist
Tue, 18-Jun-2024 08:00 am
by Jayden Tan • Apex Research

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GOHUB (0311)

Target Price (RM)

0.49

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  • Recurring income from the revenue sharing model serves as a stable source of revenue, providing sustainability and growth. Approximately 50.0% of total revenue contributed from the recurring income model, primarily derived from passengers of Gohub’s customers, notably KTMB. This income stream is resilient, even during economic downturns, due to the strong stickiness of public transportation users. As the number of public transport passengers grows and Gohub secures more customers under the revenue sharing model, we anticipate that recurring income will continue to expand over time.

  • Anticipating increase adoption of public transportation. We expect steady growth in public transport usage driven by government initiatives aimed at developing the sector and addressing rising traffic congestion. Moreover, a growing population is expected to contribute to higher usage rates, thereby boosting income for the Group.

  • Opportunities in the addressable market from public transport development. Gohub currently serve seven bus terminals in Malaysia with their TOS solutions. A significant development in Malaysia's public transport sector has been announced by the Ministry of Transport, requiring evaluation of all 169 bus terminals in Peninsular Malaysia by APAD. This initiative could potentially expand the addressable market for Gohub's TOS systems to include in the underserved terminals. Additionally, Gohub has a track record of providing AFC solutions to KTMB, well positioned to on board Prasarana as a potential customer. Prasarana, a key player in public transportation, is set to implement an open payment system for its rail and bus services in the Klang Valley. Furthermore, upcoming mega rail projects such as LRT 3, ECRL, and RTS present substantial market opportunities for Gohub. Gohub has also entered the sea transportation segment, collaborating with the Sabah Port Authority to implement transportation IT solutions at eight ferry terminals. This expansion demonstrates the adaptability of Gohub's transportation IT solutions beyond land-based transport.
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