Go Hub IPO promises 40% upside, says Apex Securities

GO Hub Capital Bhd, a transportation information technology (IT) solutions provider who’s IPO share sale closes today, is a ‘Buy’ with a 40% upside at a local research house.

Apex Securities Bhd has given the Cyberjaya-based company a fair value of 49 sen, a 40.0% potential upside from its IPO price of 35 sen, by assigning a target price over earnings (PE) of 18.0x to its financial year 2025 forecast numbers.

“We are optimistic about Gohub due to its robust recurring income, which ensures steady growth and mitigates risks during economic downturns,” Apex Securities said in a note released yesterday.

It added that the extensive addressable market opportunities allowed Go Hub to leverage its current technology and expertise to secure more customers and expand its recurring income base.

“This strategic positioning positions Gohub favourably for sustained growth and market expansion in the transportation IT solution,” it said.

Go Hub is seeking listing on the ACE Market of Bursa Malaysia Securities Bhd, with IPO date set for July 3.

The company said it focuses on providing tailored IT solutions (encompassing customised software development systems and integration of hardware and software systems) with an established track record in the bus and rail segments.

Go Hub also extends its offerings to include maintenance and support services as well as terminal management services for the IT solutions that Go Hub delivers to its customers.

The group’s solutions include point of sale (POS) functions for ticket issuance and fare collection; resource management and allocation for platform and bay assignments to maximise terminal capacity and minimise traffic congestion.

It also handles scheduling functions for arrivals, departures, and turnaround times of public transportation vehicles; real-time tracking and monitoring functions for vehicles and ticket sales; management of data including passenger information and data analytics and reporting on key metrics such as ridership; on-time performance of public transportation operators, and terminal utilisation rates.

The IPO aims to raise RM37.51 million through the issuance of 107.18 million new shares.

The proceeds from the IPO will be primarily allocated to expand business operations and enhance operational capabilities, enabling Go Hub to scale up to cater for current projects and to enter new markets.

In a recent statement, Go Hub ED/CEO Tan Cherng Thong said the company has been in the transportation industry since 2011. – TMR