KUALA LUMPUR (Oct 29): CTOS Digital Bhd (KL:CTOS) surged on Thursday, extending a rebound from record lows, after the credit reporting firm’s latest results even as analysts warned of a weaker quarter ahead.
While earnings in the first nine months accounted for more than 80% of the consensus full-year estimates, the final quarter will be weaker due to the temporary suspension of some services following a cybersecurity incident in late September, according to CIMB Securities and RHB Investment Bank.
“However, we can expect a swift recovery in business once services resume,” RHB Investment Bank said and kept the stock on a ‘buy’ call, citing the company’s market position and industry preference.
Shares of CTOS Digital climbed as much as 5.5 sen or 14% to 44.5 sen. At 10.30am, the stock was trading at 43 sen, giving CTOS Digital a market capitalisation of RM946 million, as close to 22 million shares changed hands.
CTOS Digital has lost about 45% of its value year to date and has been trading below its listing price since 2022, partly due to weaker-than-expected earnings and a prolonged vacuum at the top management. The company appointed a chief executive in January after more than a year of vacancy.
Post-results, there are five ‘hold’, four ‘buy’, and still no ‘sell’ calls among analysts tracked by Bloomberg. The average 12-month target price, meanwhile, has fallen to 64 sen.
CIMB Securities, which maintained the stock’s ‘hold’ call, flagged further woes for CTOS Digital from the expiry of a tax incentive in November that will subject its taxable to the statutory corporate tax rate of 24% compared to an effective rate of about 8% to date.
“We expect these factors to weigh on profitability, with the full impact of the higher tax rate becoming more pronounced” in 2027, the house research added.
CTOS Digital first disclosed the cybersecurity incident on Sept 23, saying unauthorised access had occurred in an environment supporting its consumer business.
Bank Negara Malaysia suspended the Central Credit Reference Information System — a key database mostly known as CCRIS that collects credit and loan data — disrupting some of CTOS Digital’s credit reporting services, including CTOS Score and other related products.
On Wednesday, CTOS Digital reported an 11.5% year-on-year increase in net profit for the third quarter ended Sept 30, 2026 (3QFY2026), supported by higher revenue and contributions from associate companies.