KUALA LUMPUR (March 27): Sarawak-based Insights Analytics Bhd (KL:IAB) said it is being sued by a hotel chain operator for the payment of a balance purchase price of RM8.48 million in a software source code deal.

In a bourse filing on Friday, the group said the lawsuit against its wholly owned unit Insights Analytics Technologies Sdn Bhd, and its directors Bong Joon Fook and Wee Khiam Hui, was filed by Place2Stay Management Sdn Bhd at the Kuching High Court.

The claim stems from four source code sale agreements signed in October and November 2024, covering systems for construction, hotel operations, transport management and road maintenance, with a total value of RM13.42 million.

Payment terms were later revised to 36 monthly instalments of RM368,700 beginning Nov 30, 2024, said Insights Analytics.

The group said its subsidiary subsequently relinquished rights to three of the four codes back to Place2Stay Management, retaining only one system.

According to Insights Analytics, following this relinquishment, the group is no longer liable for the balance claimed.

It added that any financial impact arising from the suit is limited to the disputed amount, and that operations remain unaffected as the group has repositioned away from the affected systems.

Insights Analytics said its board intends to seek legal advice, including whether to refer the matter to arbitration.

Separately, Insights Analytics posted a revenue of RM44.28 million for the third quarter ended Jan 31, 2026 (3QFY2026), up 67.3% from RM26.47 million in the preceding quarter, driven by stronger contributions from water technology solutions, particularly construction services.

Profit before tax came in at RM12.29 million, down 9.4% from RM13.57 million previously, mainly due to lower margins in the water technology segment.

Looking ahead, the group said its proprietary systems and long-standing ties with Sarawak water agencies position it well to secure new projects and sustain regional leadership.

Shares in Insights Analytics closed 13 sen or 8.7% lower at RM1.36 on Friday, giving the group a market value of RM748 million. The counter has surged 277% since its initial public offering at 36 sen on Oct 27, 2025.