KUALA LUMPUR (Jan 5): Insights Analytics Bhd (KL:IAB) is set for robust earnings growth over the next three years, said CIMB Securities, as the stock surged to a new record on Monday.
Earnings at the Sarawak-based firm, which mainly provides asset management systems to water utilities, could grow 52% annually on average over the next three financial years, CIMB Securities said in initiating coverage with a ‘buy’ call. Gross margins, meanwhile, will stay at 52%-58%, the house noted.
“IAB is well positioned to benefit from government initiatives to reduce non-revenue water losses and drive digitalisation of water utilities,” CIMB Securities said in a note.
The initiation marks Insights Analytics’ first regular analyst coverage since its listing in October 2025. The stock surged as much as 33 sen or 29% to RM1.46, its upper limit for the day. Investors who bought its shares during the initial public offering (IPO) and held on would have more than quadrupled their investment.
Malaysia has identified initiatives to combat non-revenue water — treated water that doesn’t reach consumers and fails to be billed — as one of the priority areas under the Water Sector Transformation 2040 road map and Budget 2026.
Insight Analytics is now expanding analytics and internet-of-things capabilities beyond water utilities into sectors such as transport, construction, and hospitality — a segment that produced gross margins of as high as 77% for the company.
“These trends point to sustained earnings momentum and improving cash flow visibility as IAB’s dual-engine model scales,” CIMB Securities said.
Insight Analytics’ current valuation is “undemanding” versus its target price of RM2.10, the research house said. There is also a scarcity premium, as the company is Malaysia’s only listed pure-play in digital water and intelligent asset management, the house noted.
“As a recently listed IPO, we believe IAB remains undervalued, as the market has yet to fully price in its dual-engine earnings profile, combining project-based water-technology execution with scalable, higher-margin digital platforms,” CIMB Securities said.