KUALA LUMPUR (Oct 7): ACE Market-bound Insights Analytics Bhd is confident that its intelligent asset management (IAM) segment will support the above-average profit after tax margins of over one-third of its revenue achieved last year.
Its PAT margin, recorded at 38.2% in the financial year ended April 2025 (FY2025), is "sustainable based on our product mix", said chief financial officer Chong Chiew Mien at a press conference held in conjunction with the group’s initial public offering (IPO) launch.
Sarawak-based Insights Analytics operates a water asset management system business and expanded into IAM solutions in FY2024.
The IAM solutions provide predictive analytics, automated reporting and proactive alerts for the hospitality, transportation and construction industries.
Since then, the segment has grown to account for 68.4% of group revenue in FY2025, overtaking its water technology solutions segment’s 31.6%.
This marked a reversal from FY2024, when water technology solutions made up 68.1% and intelligent asset management 31.9% of revenue.
PAT margin stood at 38.2% in FY2025, up from 21.6% in FY2024 and 11.8% in FY2023.
“With our higher margin from intelligent asset management solutions, we can achieve that kind of sustainability for profit margins,” Chong said.
Not much risk from govt exposure in water segment
Nonetheless, the water segment business is still sizeable, making up RM19 million of Insights Analytics' RM35 million unbilled order book as at Sept 8.
While most of its projects are secured through state-linked water agencies, the group does not view that as a risk.
Insights Analytics is also "a very strong player" in the sector in Sarawak, said managing director Frank Wee Khiam Hui.
“There is a lot of money being pumped into the water [sector] because water is a necessity. It is something that everyone needs. So I do not see much risk there,” Wee said, adding that the government is a good paymaster.
With the IPO priced at 36 sen per share, Insight Analytics is raising RM43.56 million through the issuance of 121 million new shares, representing an enlarged stake of 22% in the company.
The IPO also entails an offer for sale of 27.5 million existing shares, representing a 5% stake worth RM9.9 million which will go to Wee, executive director Bong Joon Fook and his daughter, chief operating officer Charlene Bong Myn Ee.
All in, the listing offers investors a 27% stake in the company and will value the group at a market capitalisation of RM198 million and a trailing price-earnings multiple of 10.4 times.
Out of the proceeds from new shares, RM22.18 million will be allocated to working capital and RM9 million for investments or acquisitions, as well as RM7.47 million to expand its office with a mini data centre, IT operations and a branch in Peninsular Malaysia.
Application for the IPO shares will close on Oct 13, and listing has been scheduled for Oct 27.