KUALA LUMPUR (Oct 7): HI Mobility Bhd (KL:HI) is now attractive, said CGS International as it undervalues the bus operator’s growth story following the stock’s recent decline.

At the last price of RM1.82, Hi Mobility is valued at just 10 times its 2028 earnings, which does not reflect its turnaround, the full potential of its cross-border bus services, and a new growth phase in Johor, the research house said in initiating coverage on the stock with a ‘buy’ call.

“Following a sentiment-driven rotational de-rating, we believe the risk-reward profile has turned attractive,” the house said. CGS International’s target price for HI Mobility is RM2.78.

The stock has lost more than RM570 million in market capitalisation and was last trading at RM1.82. CGS International is joining three other research houses with ‘buy’ recommendations on the stock. The average target price is now RM2.76, according to Bloomberg. 

Shares of HI Mobility, the sole Malaysian bus operator providing cross-border services between Johor Bahru and Singapore, have fallen 36% from its peak in October 2025 amid weak investor sentiment and heightened global uncertainty from the prolonged Iran war.

“On the flip side, this has re-profiled HI Mobility as an appealing turnaround theme within the small-mid cap space as sector-wide catalysts and operational growth tailwinds could be back in play,” CGS International said.

HI Mobility is evolving from a pure bus transportation operator to a diversified mobility services and commercial vehicle assembly or distribution specialist, and a key contributor to green mobility initiatives with electric buses, the house noted.

There is limited downside risk to the share price while dividend yields are decent at 3%-4% over the next three financial years, CGS International added.