PETALING JAYA: RHB Investment Bank Bhd has assigned a fair value of 38 sen to Bus Cap Bhd, implying a 66% upside from the company’s IPO price of 23 sen a share.
In a note titled “Bursa’s Sole Listed Bus Manufacturing Player”, RHB said Bus Cap is poised to benefit from rising bus demand driven by tourism recovery, growing intercity and cross-border travel, and recurring fleet replacement demand under the 10-year lifespan rule for express buses.
The research house noted Malaysia’s new bus registrations rebounded to 1,355 units in 2025 from 276 units during the pandemic, surpassing pre-pandemic levels.
RHB also highlighted Bus Cap’s expanded production capacity of about 168 buses annually and said its planned new factory and semi-automated fabrication line are expected to improve efficiency and shorten production lead times by FY2029.
Bus Cap posted revenue of RM88.1 million and net profit of RM9.7 million for FY2025. RHB forecasts revenue to grow to RM142.9 million and net profit to RM15.9 million by FY2028.
The IPO involves a public issue of 107.3 million new shares and an offer for sale of 19.2 million existing shares, with proceeds mainly earmarked for a new factory, machinery purchases and working capital.
Applications close on May 15, while the group is scheduled to list on the ACE Market on June 3, 2026.
