KUALA LUMPUR (April 1): HI Mobility Bhd (KL:HI) rose on Wednesday and snapped a four-day losing streak after the bus service operator reported stronger-than-expected earnings.
Net profit for the year ended Jan 31, 2026 (FY2026) beat consensus estimates by about 10%. CIMB Securities, one of only two research houses covering the stock, said HI Mobility’s growth prospects remained intact and maintained its ‘buy’ call on the stock.
“We project a positive earnings outlook” underpinned by an unbilled order book of RM360 million as well as “accretive acquisitions, strong tender pipeline, and continued subsidy eligibility”, the research house said.
HI Mobility rose as much as seven sen or nearly 4% to RM1.94. The stock was last trading at RM1.93 at 10am, giving the company a market capitalisation of RM965 million.
Shares of HI Mobility, however, have lost nearly 30% of their value year to date amid weak investor sentiment and heightened global uncertainty from the prolonged Iran war. AmInvestment Bank, the other research house covering HI Mobility, also has the stock on a ‘buy’ call.
HI Mobility “offers a relatively defensive earnings profile, anchored by its role in providing essential cross-border transport services for Malaysian commuters working in Singapore”, CIMB Securities said.
The company is the sole Malaysian bus operator providing cross-border services between Johor Bahru and Singapore, facilitating travel through one of the world's busiest land border crossings. Operating under the Causeway Link brand, HI Mobility operates a fleet of 683 buses.
Potential catalysts include contract wins linked to the Johor–Singapore Rapid Transit System Link feeder services and Prasarana Malaysia Bhd’s fleet modernisation programme, which is set to introduce 250 electric buses by the first quarter of 2027, CIMB Securities flagged.
The research house is also positive on the acquisitions of Acacia Motor Services Sdn Bhd and Handal BCM Sdn Bhd, both of which are expected to be completed this month.
The deal would strengthen HI Mobility’s in-house assembly and distribution capabilities, positioning it more competitively for integrated electric bus tenders involving vehicle supply, operations and maintenance, the research house added.