This valuation represents a 57.1% increase from its initial public offering (IPO) price of 35 sen.

In a note, TA expressed optimism about Go Hub’s growth prospects, citing the government’s ongoing efforts to advance digitalisation, which are expected to enhance Malaysia’s public transportation infrastructure and systems.

The research firm highlighted that Malaysia’s enterprise information technology (IT) services industry is projected to grow from RM23.5 billion in 2024 to RM29.5 billion in 2028, with a compound annual growth rate of 5.7%, driven primarily by digital transformation across various sectors.

“We estimate Go Hub will achieve earnings growth of 19.3%, 33.3%, and 21.7%, reaching RM9.7 million, RM12.9 million, and RM15.7 million for the financial years 2024 (FY2024), FY2025, and FY2026, respectively, supported by its unbilled order book of RM35.4 million as of May 10, 2024.

“A better outlook for the public transportation sector is also expected, with the domestic market remaining the primary revenue generator,” TA said.

Incorporated in 2022, Go Hub specialises in providing enterprise IT services, particularly transportation solutions.

These included customised software development and the integration of hardware and software systems for the bus and rail segments.

Go Hub’s core profit for FY2023 rose 26.1% year-on-year (y-o-y) to RM8.1 million, driven by higher revenue.

Its revenue increased 65.5% y-o-y to RM43.9 million, primarily due to higher income from centralised ticketing and automated fare collection systems.

In addition, the revenue increase was also contributed by the higher utilisation rate of the terminal operating system at several bus terminals under its coverage.