HLIB Optimistic SMRT's Path To Profitability, Main Market Transfer

KUALA LUMPUR, March 14 (Bernama) -- Hong Leong Investment Bank Bhd (HLIB) is confident SMRT Holdings Bhd is on track to fully eliminate accumulated losses and shift to retained earnings, positioning it for a transfer to the Main Market with stronger earnings expected in financial year 2025 (FY2025).

In a research note, HLIB said the management has already started discussions with regulators and aims to complete the process between 2026 and 2027.

“This move is expected to be a strong catalyst for its share price; it will broaden its appeal to a wider range of investors,” it said.

SMRT’s management remains optimistic on booking sequential profit growth throughout FY2025, on the back of steady deployment timeline from Tenaga Nasional Bhd (TNB) and accelerated paces from Air Selangor, Indonesia's PT Perusahaan Listrik Negara, and the Philippines' Pito AxM Platform.

Also, the Indonesian and Philippine markets are expected to ramp up the number of site counts.

Until this plays out, HLIB said management expects the current deployment pace to remain largely in line with the previous year’s trend, at a modest year-on-year expansion.

“As for Air Selangor, after successfully executing the first phase of its projects and converting some sites into managed services, the group commenced the second phase in January 2025 and expects additional site allocations upon the successful delivery of ongoing projects,” HLIB said.

As of 10.45 am, SMRT’s share price rose by half-a-sen to 94 sen, with 95,800 shares traded.

-- BERNAMA