HI MOBILITY BERHAD’s Inaugural Post-IPO Quarter: A Look at Q1 FY2026 Performance
Greetings, fellow investors! Today, we’re diving into the first quarter financial report for HI MOBILITY BERHAD, a key player in Malaysia’s public transportation sector. This report, covering the period ended April 30, 2025, marks a significant milestone as it’s the company’s first full quarter of results since its listing on the Main Market of Bursa Malaysia Securities Berhad on March 28, 2025.
While the absence of comparative figures from the preceding year means we’ll be looking at absolute performance rather than growth percentages, the report still offers valuable insights into HI MOBILITY’s initial post-IPO trajectory. The company has reported a commendable profit for the quarter and has already announced a dividend, signaling a positive start to its journey as a publicly listed entity.
Core Data Highlights: A Solid Start Post-Listing
As HI MOBILITY BERHAD just recently listed, this is their second interim financial report, and therefore, comparative figures for the preceding corresponding quarter are not available. This means we’ll be analyzing the performance based on the current quarter’s results.
Q1 FY2026 (Ended April 30, 2025)
Revenue: RM 73,763,000
Profit Before Taxation: RM 15,135,000
Profit After Taxation: RM 12,603,000
Basic & Diluted EPS: 3.11 sen
Q1 FY2025 (Ended April 30, 2024)
Revenue: N/A
Profit Before Taxation: N/A
Profit After Taxation: N/A
Basic & Diluted EPS: N/A
For the quarter ended April 30, 2025, HI MOBILITY BERHAD achieved a revenue of RM 73.76 million. This impressive figure was primarily driven by its core business segment: scheduled bus services.
Business Unit Performance
The company’s revenue streams are clearly dominated by its scheduled bus services, which cater to the general public in both Malaysia and Singapore, as well as government bodies in Malaysia. Here’s a breakdown:
| Business Segment | Revenue (RM’000) |
|---|---|
| Scheduled bus services | 69,742 |
| Chartered bus services | 2,990 |
| Others | 1,031 |
| Total Revenue | 73,763 |
Geographically, the revenue is well-balanced between its two primary markets:
| Country of Operation | Revenue (RM’000) |
|---|---|
| Malaysia | 39,237 |
| Singapore | 34,526 |
| Total Revenue | 73,763 |
Profitability and Expenses
The Group reported a Profit Before Taxation (PBT) of RM 15.14 million, leading to a Profit After Taxation (PAT) of RM 12.60 million for the quarter. This solid performance was achieved after accounting for various expenses. Key factors influencing profitability included:
- Net other income/expenses: RM 3.7 million (which notably includes bad debts recovered and IPO listing expenses).
- Administrative expenses: RM 4.7 million (covering directors’ remuneration, staff costs, depreciation, and professional fees).
- Finance costs: RM 2.1 million.
The basic and diluted Earnings Per Share (EPS) stood at 3.11 sen for the quarter, calculated based on 404,662,921 ordinary shares.
Financial Health: A Look at the Balance Sheet
As of April 30, 2025, the Group’s financial position appears robust. Total assets stood at RM 471.83 million, a significant increase from RM 355.60 million as at January 31, 2025. This increase is largely attributable to the fresh capital injection from the Initial Public Offering (IPO).
Cash and cash equivalents saw a substantial jump, from RM 47.05 million at the beginning of the financial year to RM 158.04 million at the end of the reporting period. This boosted liquidity is a direct result of the IPO proceeds. Net assets per ordinary share also improved significantly to RM 0.50 from RM 0.26 as at January 31, 2025.
Cash Flow Dynamics
The cash flow statement reflects a healthy operational performance and the impact of the IPO. The Group generated RM 14.79 million from operating activities. While investing activities saw a net cash outflow of RM 59.35 million (due to placement of short-term investments and purchase of property, plant, and equipment), financing activities generated a substantial RM 99.21 million. This was primarily from the net proceeds of the ordinary share issuance during the IPO, partially offset by dividend payments of RM 9.0 million and repayment of loans and lease liabilities.
Overall, this resulted in a net increase in cash and cash equivalents of RM 54.65 million for the quarter, bringing the total cash and cash equivalents to RM 101.41 million at the end of the period (after accounting for deposits with financial institutions).
Prospects and Strategic Direction
HI MOBILITY BERHAD’s future looks promising, with its strategies closely aligned with Malaysia’s National Transport Policy 2019–2030. This policy emphasizes developing an efficient, integrated, and sustainable public transport system, leveraging technologies like Internet of Things (IoT) and intelligent transport systems for optimized vehicle management. The Group’s focus on both cross-border and local bus services positions it well within this national agenda.
The company plans to capitalize on its core competencies, including its extensive vehicle fleet, depots, and digital infrastructure, to pursue business expansion and growth opportunities within Malaysia. A significant positive indicator is the substantial unbilled order book of RM 303.8 million for contracted services to government bodies and corporations. This provides a strong revenue visibility, with 36% expected to be recognized in FY2026, 35% in FY2027, and the remaining 29% beyond 2027.
Furthermore, the Group’s subsidiary, Handal Indah Sdn. Bhd., recently incorporated HI Ride Pte. Ltd. in Singapore (May 8, 2025), signaling an expansion into chartered bus services in the Lion City. This strategic move could open new avenues for growth and diversification.
Utilisation of IPO Proceeds
The IPO successfully raised gross proceeds of RM 115.9 million. The company’s plan for these funds clearly outlines its growth priorities:
| Utilisation of Proceeds | Proposed Utilisation (RM’000) | Percentage (%) | Actual Utilisation (RM’000) | Balance to be Utilised (RM’000) | Estimated Timeframe |
|---|---|---|---|---|---|
| Bus fleet expansion and electrification | 70,000 | 60.4% | – | 70,000 | Within 24 months |
| Expansion of electric vehicle charging infrastructure | 15,000 | 12.9% | – | 15,000 | Within 24 months |
| Technological enhancement | 5,000 | 4.4% | – | 5,000 | Within 24 months |
| Working capital | 17,900 | 15.4% | – | 17,900 | Within 24 months |
| Defraying fees and expenses related to listing | 8,000 | 6.9% | 5,530 | 2,470 | Within 6 months |
| Total | 115,900 | 100% | 5,530 | 110,370 |
This breakdown indicates a strong commitment to long-term growth through fleet modernization, infrastructure development, and technological advancements, which are crucial for a sustainable public transport business.
Financial Obligations and Commitments
While the report doesn’t detail operational risks in a separate section, it does highlight financial commitments. As of April 30, 2025, the Group has performance bonds of RM 12.71 million given to third parties for contracts. Additionally, significant capital commitments include:
- Purchase of buses: RM 4.91 million
- Purchase of new land and building: RM 19.25 million
These commitments align with the planned expansion and modernization efforts funded by the IPO proceeds.
Summary and Outlook
HI MOBILITY BERHAD’s first full quarter results post-IPO present a picture of a company off to a solid start. Despite the lack of comparative historical data due to its recent listing, the reported revenue of RM 73.76 million and profit after tax of RM 12.60 million are encouraging. The strong unbilled order book provides good revenue visibility for the coming years, underpinning the Group’s growth prospects.
The strategic alignment with national transport policies, coupled with plans for fleet expansion, EV charging infrastructure, and technological enhancement, positions the company for continued relevance and growth in Malaysia’s evolving mobility landscape. The recent dividend declaration further underscores the company’s commitment to shareholder returns.
Key points from the report include:
- Solid revenue and profit figures for its first full quarter post-IPO.
- Dominant contribution from scheduled bus services, with a balanced geographical spread.
- Significant unbilled order book providing future revenue visibility.
- Clear strategic direction aligned with national transport policy and expansion plans, including a new Singapore subsidiary.
- Healthy cash position bolstered by IPO proceeds and a declared dividend.
While the initial performance is positive, investors should continue to monitor the execution of their expansion plans and the utilization of IPO proceeds in subsequent quarters.
From a professional standpoint, HI MOBILITY BERHAD appears to be executing its post-IPO strategy effectively, focusing on core strengths while investing in future growth areas like electrification and technology. The unbilled order book is a particularly strong point, offering a degree of stability in future earnings.
What are your thoughts on HI MOBILITY BERHAD’s first quarter performance? Do you believe they can maintain this growth momentum and successfully implement their expansion plans in the competitive mobility sector? Share your views in the comments below!
