HI Mobility Bhd supported by new segment growth and EV rollout momentum, CIMB Investment Bank Bhd (CIMB Securities) analysts maintained a BUY call with an unchanged target price of RM2.80, citing strong 1QFY27 earnings performance, a RM255 million backlog and improving visibility from Johor operations and upcoming electric bus deliveries
The group recorded a strong set of 1QFY27 results with CIMB analysts highlighting that revenue rose 51.2% year-on-year to RM111.5 million while core net profit increased 35% year-on-year to RM17.5 million. They said the performance was mainly driven by the newly integrated commercial vehicle manufacturing, assembly and distribution segment following recent acquisitions, which accounted for nearly a third of group revenue.
The analysts added that scheduled bus services also delivered steady growth supported by new Johor intra-city contracts under BAS Muafakat Johor with revenue rising 6.5% year-on-year. On a quarterly basis, earnings improved as integration benefits from the new segment flowed through, although higher operating costs linked to preparations for the Johor Bahru Stage Bus Services Transformation contract weighed slightly on margins.
CIMB analysts said the group’s outlook remains positive with earnings visibility anchored by a RM255 million order backlog and the scheduled delivery of up to 250 electric buses over the next 12 months. They added that integration of recent acquisitions strengthens HI Mobility’s ability to compete for end-to-end electric bus contracts covering supply operations and maintenance.
The Johor–Singapore Rapid Transit System Link was identified as a key re-rating catalyst, with analysts estimating potential feeder route contracts worth about RM190 million annually. They said improved cross-border connectivity and reduced congestion would support higher ridership and operational efficiency.
As of 11.59 am, the stock price slips 0.91% to RM2.18.
