Company Coverage
Blue Bird (BIRD IJ): Mobility Platform Drives Resilient Growth
NOT RATED
Current price:
Target price:
Upside:
Rp1,555
n.a.
n.a.
Analyst
Analyst
Highlights
- Two complementary growth engines support long-term earnings growth. BIRD combines a resilient market-leading taxi franchise with an established non-taxi portfolio, which already contributes 30% of revenue and is expected to expand to around 35% by 2030, improving earnings quality.
- Attractive valuation offers both growth and income. Trading at only 5.3x 2026F PE with an 8.6% dividend yield, BIRD's valuation appears attractive given its transformation into a diversified mobility platform with resilient earnings growth and strong free cash flow generation.
Analysis
- Repositioning itself into a broader mobility platform. Blue Bird (BIRD) has repositioned itself from a conventional taxi operator into a broader mobility platform. While the taxi business remains the core earnings contributor with 70% of revenue, management's strategy expands to the non-taxi business, which involves rental car, shuttle, bus charter, auction for used cars, last-mile delivery services, and car maintenance. The non-taxi business expanded to 30% of revenue in 2025. This diversification should improve earnings quality and margin by increasing exposure to recurring contractual revenues while reducing dependence on cyclical point-to-point taxi demand. As of Jun 26, BIRD operates more than 26,000 total fleets across 22 cities.
- Stable taxi business, expecting to deliver high single-digit to low teens growth annually. Its taxi business revenue grew 12.7% CAGR in 2022-25, which was supported by: a) fleet expansion with 2,000-3,000 vehicles this year; and b) an improving average revenue per vehicle (ARPV) through dynamic pricing, a high proportion of long-distance trips (like airport trips), and price adjustment. The average operating fleet grew 10% CAGR in 2022-25 with utilisation rate increasing to 81.3% in 2025 (Jun 26: 82.2%). ARPV improved to Rp711,105 in Jun 26 from Rp658,585 in 2022. Management expects that the combination of disciplined fleet expansion and higher fleet productivity should support its high single-digit to low teens growth annually.
- Non-taxi business has become a meaningful growth engine rather than a diversification initiative. Non-taxi operations are no longer an emerging business but already contribute approximately 30% of group revenue, compared with only 10-15% a decade ago. In 2022-25, the non-taxi business posted 30.7% CAGR revenue growth, higher than the 16.7% CAGR group revenue growth, with a better margin profile compared with its taxi business. The non-taxi services (Golden Bird, Big Bird, Cititrans, public transportation and Caready) provide exposure to corporate mobility, domestic tourism, inter-city transportation and government contracts, each supported by different demand drivers. Management targets non-taxi revenue to grow faster than the core taxi business and increase its contribution to approximately 35% by 2030.
Highlights
- Two complementary growth engines support long-term earnings growth. BIRD combines a resilient market-leading taxi franchise with an established non-taxi portfolio, which already contributes 30% of revenue and is expected to expand to around 35% by 2030, improving earnings quality.
- Attractive valuation offers both growth and income. Trading at only 5.3x 2026F PE with an 8.6% dividend yield, BIRD's valuation appears attractive given its transformation into a diversified mobility platform with resilient earnings growth and strong free cash flow generation.
Analysis
- Repositioning itself into a broader mobility platform. Blue Bird (BIRD) has repositioned itself from a conventional taxi operator into a broader mobility platform. While the taxi business remains the core earnings contributor with 70% of revenue, management's strategy expands to the non-taxi business, which involves rental car, shuttle, bus charter, auction for used cars, last-mile delivery services, and car maintenance. The non-taxi business expanded to 30% of revenue in 2025. This diversification should improve earnings quality and margin by increasing exposure to recurring contractual revenues while reducing dependence on cyclical point-to-point taxi demand. As of Jun 26, BIRD operates more than 26,000 total fleets across 22 cities.
- Stable taxi business, expecting to deliver high single-digit to low teens growth annually. Its taxi business revenue grew 12.7% CAGR in 2022-25, which was supported by: a) fleet expansion with 2,000-3,000 vehicles this year; and b) an improving average revenue per vehicle (ARPV) through dynamic pricing, a high proportion of long-distance trips (like airport trips), and price adjustment. The average operating fleet grew 10% CAGR in 2022-25 with utilisation rate increasing to 81.3% in 2025 (Jun 26: 82.2%). ARPV improved to Rp711,105 in Jun 26 from Rp658,585 in 2022. Management expects that the combination of disciplined fleet expansion and higher fleet productivity should support its high single-digit to low teens growth annually.
- Non-taxi business has become a meaningful growth engine rather than a diversification initiative. Non-taxi operations are no longer an emerging business but already contribute approximately 30% of group revenue, compared with only 10-15% a decade ago. In 2022-25, the non-taxi business posted 30.7% CAGR revenue growth, higher than the 16.7% CAGR group revenue growth, with a better margin profile compared with its taxi business. The non-taxi services (Golden Bird, Big Bird, Cititrans, public transportation and Caready) provide exposure to corporate mobility, domestic tourism, inter-city transportation and government contracts, each supported by different demand drivers. Management targets non-taxi revenue to grow faster than the core taxi business and increase its contribution to approximately 35% by 2030.
NOT RATED
Current price:
Target price:
Upside:
Rp1,555
n.a.
n.a.
Analyst
Analyst
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