KUALA LUMPUR (June 29): Bus operator HI Mobility Bhd (KL:HI) posted a record first-quarter net profit, supported by contributions from its newly acquired commercial vehicle manufacturing and distribution businesses, while revenue rose 8.4% to a record RM111.54 million.

Net profit for the quarter ended April 30, 2026 increased 13.5% to RM16.31 million from RM14.37 million a year earlier, as revenue climbed from RM102.93 million.

The higher revenue was driven by continued demand for the group's scheduled bus services and increased vehicle sales from its distribution segment.

Its scheduled bus services continued to benefit from additional Stage Bus Service Transformation (SBST) contracts, alongside steady ridership across its cross-border and domestic routes, supported by sustained commuter demand and economic activity in Malaysia and Singapore.

The group's bottom line was also lifted by a lower effective tax rate of 13.6%, compared with 18.5% a year earlier, after income tax expenses fell to RM2.57 million from RM3.26 million.

HI Mobility declared a first interim dividend of one sen per share, unchanged from a year earlier. The dividend will be paid on Aug 3.

Looking ahead, the group said Malaysia's public transportation sector remains supported by government initiatives under the National Transport Policy 2019-2030, which aims to improve the accessibility, connectivity and sustainability of the country's public transport network.

It also expects to benefit from the upcoming Rapid Transit System (RTS) Link between Johor Bahru and Singapore, which is anticipated to boost cross-border mobility and increase demand for first- and last-mile transportation services.

"As the sole Malaysian operator providing cross-border bus services between Johor and Singapore, the group believes it is strategically positioned to capitalise on the anticipated increase in commuter traffic and connectivity arising from the RTS Link," it said.

The group noted that the completion of its acquisitions of Acacia Motor Services Sdn Bhd and Handal BCM Sdn Bhd on April 8 has expanded its business into the manufacturing, assembly, distribution, sale, maintenance and repair of commercial vehicles, strengthening its mobility value chain and enhancing its ability to pursue future transport-related opportunities.

HI Mobility's unbilled order book for contracted services stood at approximately RM255 million, providing earnings visibility over the coming financial periods.

Barring unforeseen circumstances, the board said it remains cautiously optimistic of delivering sustainable performance, underpinned by its established transportation operations, enlarged business base and continued focus on operational efficiency.

Shares in HI Mobility closed unchanged at RM2.20 on Monday, giving the company a market capitalisation of RM1.17 billion. The stock has gained 37.5% over the past year.