AMINVEST: Mobility Leader Poised for Substantial Growth, Analysts Recommend Buy

A recent investment bank research report initiates coverage on a key player in the mobility sector, projecting a robust 20% compound annual growth rate (CAGR) for group earnings between FY25 and FY28F. Analysts at TA SECURITIES have issued a “BUY” recommendation, setting a target price of RM0.25, representing a significant 25.0% upside from the last traded price of RM0.20.

The positive outlook is underpinned by strong fundamentals and clear policy tailwinds, positioning the company as Malaysia’s leading mobility-as-a-service (MaaS) operator. Key drivers include its dominant cross-border operations, a defensive intracity segment, and potential vertical expansion into EV-related and bus-related operations.

Performance and Operational Strengths

The company’s cross-border mobility segment is forecast to grow revenue by 9% year-on-year (YoY) from FY25 to FY28F. This growth is expected to be significantly bolstered by the completion of the Johor Bahru-Singapore RTS Link in 2027, which will unlock a substantial RM177 million addressable market. The company’s affordable fare structure (RM4.80 per trip versus an estimated RM11.00 by rail) and route exclusivity are expected to capture significant spillover demand.

Intracity operations, contributing approximately 35% of group revenue, are projected to deliver 8% YoY topline growth in FY25-FY28F. These operations provide a stable, defensive earnings base under the government-backed SBST Gross-Cost Model, where fare and ridership risks are borne by the government, ensuring predictable cash flows and stable margins. The company boasts an unbilled order book of RM266 million, providing 1 to 1.5 years of revenue visibility extending to 2029, and is actively expanding its SBST network into new states such as Sabah.

Future Outlook and Growth Catalysts

A significant growth engine is the planned entry into EV operations and vertical expansion into bus-related manufacturing. This strategic move could transform the company into an integrated OEM-operator, enhancing cost efficiency, supply-chain control, and margins. Localising bus production in Johor is estimated to reduce acquisition costs by 15-25% through import-duty elimination and logistics optimisation. The company’s digital platforms, ManjaLink and ManjaSIM, further integrate hardware, data, and connectivity, forming Malaysia’s first end-to-end mobility platform.

The company’s strategy is strongly aligned with national policy tailwinds, including Malaysia’s National Energy Transition Roadmap (NETR) and Low Carbon Mobility Blueprint (LCMB), which target 50% electrification of public bus fleets by 2025 and promote local EV value-add. This alignment ensures government support and positions the company to attract sustainability-driven institutional investors.

With a robust balance sheet and low net gearing of just 0.1x post-IPO (2Q26), the company has ample firepower for future growth initiatives, ensuring financial flexibility without diluting returns.

Risks and Considerations

While the outlook is positive, potential risks include competition from other transport modes, contract renewal risks (though mitigated by a strong track record), dependence on key personnel, and exposure to macroeconomic and regulatory changes. However, the company’s government-backed gross-cost contracts are expected to provide earnings stability, mitigating many of these risks.