KUALA LUMPUR (May 25): Zetrix AI Bhd (KL:ZETRIX), formerly known as MyEG Services Bhd, saw its net profit jump more than 49% in the first quarter, driven by higher contributions from web3 application service fees on its blockchain platform, as well as income from the sale of Zetrix layer-1 nodes.

However, earnings were partially offset by a RM9.1 million impairment loss arising from the mark-to-market valuation of its investment in HeiTech Padu Bhd (KL:HTPADU).

For the three months ended March 31, 2026 (1QFY2026), Zetrix posted a net profit of RM271.3 million, compared with RM181.6 million a year earlier, according to its Bursa Malaysia filing. Revenue rose 28.8% to a record RM386.3 million from RM300 million previously.

No dividend was declared for the quarter under review.

Zetrix AI acquired an initial 14.4% stake or 14.57 million shares in HeiTech Padu for RM31.25 million in March 2024, comprising both cash and share-based transactions, when Datuk Seri Farhash Wafa Salvador was a substantial shareholder in Heitech Padu. Farhash disposed of his shares a month later, but his lawyer Sandraruben Neelamagham remains as its executive director.

Zetrix AI raised its stake in Heitech Padu up to 24.935% on Aug 11, 2025 before cutting its stake to 16.9% or 27.5 million shares as of Nov 12, 2025. Based on HeiTech Padu’s closing share price on Monday of RM1.38, the total stake is valued at about RM38 million.

Looking ahead, Zetrix AI said it will continue advancing its Zetrix blockchain and artificial intelligence (AI) initiatives to drive organic growth.

The group is also exploring a potential carve-out of projects from its lab into a new subsidiary, with plans for a possible listing on an international stock exchange such as Nasdaq or other global markets.

"A successful listing will enable the company to tap a larger pool of global capital to further propel Zetrix’s push to become one of the leading AI companies," it said.

Separately, Zetrix AI said it has signed a memorandum of understanding (MOU) with Nasdaq-listed Forefront Tech Holdings Acquisition Corp (FTHAC) to explore a potential collaboration.

FTHAC, incorporated in the Cayman Islands, is a blank-cheque company formed to pursue mergers, share exchanges, asset acquisitions or similar business combinations. It began trading on the Nasdaq Global Market on April 30, 2026, following its initial public offering on May 1, 2026.

Zetrix AI said the MOU is non-binding and does not create any legal obligation for either party to proceed with the transaction unless definitive agreements are signed.

It added that the MOU is subject to an exclusivity period of 180 days, with an option for a mutual extension of another 30 days.

Nevertheless, Zetrix AI said the terms of the MOU are governed by a separate non-disclosure agreement, under which all details of the proposed collaboration will remain confidential.

Zetrix AI’s shares rose one sen or 1.3% to 80.5 sen on Monday, valuing the group at RM6.38 billion. Year to date, the stock is down 0.62%