CTOS recovery intact on value-unlocking measures

PETALING JAYA: CTOS Digital Bhd has moved into a recovery phase supported by a new strategic roadmap and value-unlocking initiatives, analysts believe.

Brokers remain optimistic about its long-term growth trajectory and resilient core business.

Kenanga Research noted CTOS’ first half results ended June 30, 2026 (1H26) results signals the company could be on track for a sustainable recovery after a washout financial year ended Dec 31, 2025.

This optimism is underpinned by a healthy 9% year-to-date revenue growth and a stable cost base.

It added CTOS’ new three-year Strategic Roadmap, which targets a normalised net profit compound annual growth rate of 35% to 40% through 2028.

This growth is expected to be driven by deeper penetration into financial institutions, artificial intelligence-powered analytics, and the upcoming Consumer Credit Act 2025, which expands the addressable market to buy now pay later providers.

Kenanga Research maintained an outperform call on CTOS with a target price (TP) of 83 sen a share.

RHB Research has a positive view on CTOS proposed divestment of a 10% stake in Juris Technologies (Juristech) for RM50mil.

The value unlocking move paves the way for a potential initial public offering of the remaining stake in the company within 18 months at a more favourable valuation could be value accretive and provide additional upside not to mention offset loss of recurring income.

The research house has maintained a buy call on CTOS with a TP of 89 sen a share. CTOS’s strong recurring income and attractive dividend yield of 6.4% and current valuation presented a buying opportunity.

Growth is further supported by international business expansion and cost-saving initiatives aimed at reducing the cost-to-income ratio to 42% over three years.

HLIB Research also maintained a buy call on CTOS with a TP of 89 sen a share.

It viewed the Juristech stake disposal positively, noting it allowed CTOS to streamline its portfolio and return RM24.5mil to shareholders via a special dividend.

Furthermore, the research house believed CTOS share price has enhanced the risk-reward profile for investors seeking exposure to Malaysia’s leading credit reporting agency.