CIMB Investment Bank Bhd (CIMB Securities) has initiated coverage on HI Mobility Bhd with a BUY call and a target price of RM2.05, highlighting the company’s dominant position in cross-border public transport and its strong alignment with Malaysia’s public mobility policies. The research house views HI as a rare proxy to Johor’s multi-year infrastructure boom, particularly through its Causeway Link brand, which accounts for nearly 60% of group revenue via its 150 licensed cross-border buses serving the Malaysia-Singapore corridor.
With over 60,000 daily passengers, CIMB Securities believes HI Mobility holds a hard-to-replicate advantage backed by regulatory moats and local operational know-how. It expects core net profit to grow at a 17.6% CAGR from FY2025 to FY2028, driven by ridership growth, route expansion and digital transformation. The group’s net profit rose to RM45 million in FY2025 from RM35.4 million the previous year, and is forecasted to increase further to RM73.3 million by FY2028.
The house notes HI is well-positioned to benefit from catalytic regional projects such as the Johor-Singapore Rapid Transit System (RTS) Link and the Johor-Singapore Special Economic Zone (JS-SEZ), which are set to boost regional commuting, tourism and logistics flows. The RTS feeder network alone could unlock up to RM177 million in annual revenue by FY2028, although this has not been factored into CIMB’s current estimates.
The report also highlights HI’s involvement in government-led programmes like the Stage Bus Service Transformation and Smart Selangor Bus, which generate stable, recurring income. With Malaysia targeting a 40% public transport modal share by 2030, CIMB Securities expects continued policy support to underpin growth.
Published by Business Today (18 July 2025). For more details, read the full news coverage here: HI Mobility’s Unique Role In Johor (businesstoday.com.my)