KUALA LUMPUR (Feb 5): Bus operator HI Mobility Bhd (KL:HI) has secured a contract worth over RM78 million for intracity bus services in Johor.

The contract covers intracity bus operations under Bas Muafakat Johor in Johor Bahru, Iskandar Puteri, Pasir Gudang, Kulai, Pengerang and Mersing, the company said in a filing with Bursa Malaysia.

The term runs from Jan 1, 2026 to Dec 31, 2030, with an option for a two-year extension.

Including the extension period, the total value of the project amounts to RM78.15 million, the company said.

HI Mobility said it obtained approval from the Johor public transport authority on Wednesday, in announcing the award to its wholly-owned subsidiary Handal Indah Sdn Bhd.

HI Mobility’s share price closed down 3.51% or eight sen to RM2.20 on Thursday, giving the group a market capitalisation of RM1.1 billion, ahead of the contract announcement. 

HI Mobility was trading at 22 times its earnings, significantly higher than its peer Perak Transit Bhd’s (KL:PTRANS) earnings multiple of four times, according to AskEdge. The stock was listed on the Main Market in March last year, at an offer price of RM1.22 per share.