Exciting news for investors as TA Securities Holdings Bhd has assigned a fair value of 55 sen to Go Hub Capital, which is set to list on the ACE Market on July 3. This valuation represents a significant 57.1% increase from its initial public offering (IPO) price of 35 sen, showcasing the promising prospects for this innovative company.

Strong Growth Prospects

TA Securities is optimistic about Go Hub Capital’s growth potential, especially with the Malaysian government’s ongoing efforts to advance digitalisation. These initiatives are expected to significantly enhance the country’s public transportation infrastructure and systems, providing a solid foundation for Go Hub’s growth.

Industry Outlook

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 (CAGR) of 5.7%. This growth is primarily driven by digital transformation across various sectors, presenting a vast market opportunity for Go Hub Capital.

Financial Performance

Go Hub Capital has shown impressive financial performance, with core profit for FY23 rising 26.1% year-on-year to RM8.1 million, driven by higher revenue. The company’s revenue increased by 65.5% year-on-year to RM43.9 million, primarily due to higher income from centralised ticketing and automated fare collection systems, as well as an increased utilisation rate of the terminal operating system at several bus terminals under its coverage.

Earnings Projections

TA Securities estimates that 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 (FY24), FY25, and FY26, respectively. This growth is supported by its unbilled order book of RM35.4 million as of May 10, 2024, ensuring a steady revenue stream in the coming years.

Specialisation in Enterprise IT Services

Go Hub Capital specialises in providing enterprise IT services, particularly in transportation solutions. The company excels in customised software development and the integration of hardware and software systems for the bus and rail segments, positioning it as a key player in the digital transformation of Malaysia’s transportation sector.

Conclusion

With a fair value of 55 sen set by TA Securities, Go Hub Capital is poised for a strong market debut on the ACE Market. The company’s impressive financial performance, robust growth prospects, and strategic focus on digital transformation make it an attractive investment opportunity. Don’t miss out on the chance to invest in a company that’s set to play a crucial role in Malaysia’s digital future.

Stay tuned for more updates and insights on Go Hub Capital.

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