KUALA LUMPUR (July 10): Insights Analytics Bhd (KL:IAB) could begin to see revenue from its high-margin digital twin platform as soon as in the next 12 months, TA Securities flagged.
Earnings from the digital twin platform — a software that replicates physical assets and systems in virtual environments for real-time monitoring and control — could help drive a 31% rise in earnings at the Sarawak-based firm for the financial year ending April 30, 2027 (FY2027), according to the research house.
That represents “a structural step-change in earnings quality as the group's mix gradually shifts towards higher-margin, software-driven income,” TA Securities said.
Insights Analytics has finalised pricing for two active smart city tenders in Peninsular Malaysia, “representing the first tangible conversion of this pipeline into revenue,” the house said, noting that pilot projects could lead to state-level deployments worth up to RM200 million.
The house initiates coverage on Insights Analytics on 'buy' call with target price of RM2.06, joining CIMB Securities that also has the stock on 'buy' and target price of RM1.95. The stock was last traded at RM1.60.
Shares of the company, which mainly provides asset management systems to water utilities, have more than quadrupled since its listing less than nine months ago thanks to contract wins amid accelerating roll-out of water infrastructure projects.
The federal government plans to spend RM3 billion under Budget 2026 to combat non-revenue water — treated water that doesn’t reach consumers and fails to be billed — supplemented by state-level programmes.
The company is already a pre-qualified bidder in the final tender stage national programme.
Insights Analytics is the only listed Malaysian entity offering pure-play exposure to digital water solutions and non-revenue water reduction, “a positioning that has gained structural relevance as Malaysia's water sector enters a sustained investment cycle,” TA Securities said.
TA Securities is forecasting earnings of RM54 million on revenue for RM216 million for FY2027 before a 20% growth for the subsequent two financial years.