PETALING JAYA: After establishing a strong foothold in Sarawak’s water and infrastructure sectors, Insights Analytics Bhd
is gearing up to expand its intelligent asset management solutions across Peninsular Malaysia, supported by proceeds from its upcoming ACE Market listing.
Managing director Frank Wee Khiam Hui said the move marks the Sarawak-based technology solutions provider’s next phase of growth as it seeks to “level up” operations beyond its home market.
“We already have an office in Kuala Lumpur. We just need to start it with the people. Then, we can bring all our solutions over to Peninsular Malaysia. That is our main aim,” he said, adding that the market size in the Peninsular is significantly larger than Sarawak.
Currently, Insights Analytics serves about 40 out of 50 key customers in Sarawak, mainly through “word of mouth.”
Wee attributed this to the group’s reputation for providing customised and cost-efficient systems for water utilities and infrastructure operators.
“A lot of this software is available off-market, but most of it is overseas and expensive. You end up paying for features you don’t use,” Wee said.
“We can build a system as cheap as RM300,000 or as expensive as RM8mil to RM9mil.”
Insights Analytics began in the water industry, where Wee – a computer science graduate – saw an opportunity to modernise traditional manual operations that relied on supervisory control and data acquisition (Scada) systems.
“The water industry was very traditional. Every supplier had its own software that couldn’t talk to others. We thought it shouldn’t be that way,” he said.
This, Wee said, led to the development of IntelliWater, an integrated platform that consolidates data from multiple equipment brands into a single dashboard.
The system is currently used by Air Kelantan Sdn Bhd and Sarawak Water Sdn Bhd.
Building on that success, Wee said Insights Analytics has expanded into construction, logistics, road maintenance and hospitality, leveraging the same data-driven approach.
“Instead of just looking at the water pipe, your electricity cable becomes that water pipe. The same platform can be applied across industries – it’s just the asset that’s different,” Wee explained.
Its suite now includes IntelliConstruct (for raw material tracking), IntelliTrack (fleet management), IntelliRoad (road monitoring) and IntelliHotel (hotel management tool).
These fairly new solutions – that came into the market about a year and half ago – now contribute about 60% of group revenue, with 40% of customers under service-level agreements that generate recurring income.
The group’s profit after tax margin improved from 11.8% in the financial year ended April 2023 (FY23) to 21.6% in FY24, and further to 38.2% in FY25.
Wee said the group’s strong profit margins reflect the scalability of its software business, where most costs are incurred upfront during development.
“Most of the cost is upfront in research and development. Once we pass that stage, margins expand quickly,” said Wee.
He noted that the capital expenditure for its core products has already been incurred, but the company continues to invest around 5% of annual revenue into research and development.
Wee said the group’s next major project is digital twin technology, a visual simulation platform for infrastructure systems such as drainage, traffic control and flood management.
“A digital twin can be a city, a building or a port. You can simulate rainfall, flooding or traffic – it applies across everything,” Wee said.
From its initial public offering (IPO), Insights Analytics aims to raise RM43.56mil, comprising 121 million new shares at 36 sen each and an offer for sale of 27.5 million shares.
Of the total proceeds, about RM22.18mil, or 50.9%, has been earmarked for working capital to support the group’s expansion plans.
Wee highlighted that as at end-FY25, Insights Analytics reported cash and short-term deposits of RM9.8mil and a gearing ratio of 0.03 times.
“We currently have about 35 employees, and we intend to hire another 20 to 25 people post-IPO,” said Wee, who will hold a 37.2% stake in the company after the listing.
Another RM4.4mil or 10.1% will go towards the expansion of its corporate office in Sarawak, including the establishment of a mini data centre, while RM1.86mil or 4.3% has been allocated for the expansion of information technology operations.
The group also plans to spend RM1.21mil or 2.8% to set up a branch office in Peninsular Malaysia as part of its nationwide growth strategy.
Meanwhile, RM9mil or 20.7% has been set aside for expansion through investments, mergers and acquisition opportunities, with the remaining RM4.91mil or 11.2% to cover listing expenses.
The company is set to list on Oct 27 at an indicative market capitalisation of RM198mil, based on its IPO price.
TA Research, in a report, said at 36 sen a share, Insights Analytics is priced at a trailing price-earnings ratio of 11.3 times FY25 core earnings per share (EPS).
The research house values the company at 12 times 2026 EPS, arriving at a fair value of 55 sen per share.
It forecasts earnings growth of 32.8%, 12.1%, and 17.4% for FY26 to FY28.
This is supported by an unbilled order book of RM35.3mil, ongoing business expansion and a favourable industry outlook, thanks to government initiatives to strengthen Malaysia’s water management sector.
“We expect the Sarawak market to remain the group’s primary revenue contributor,” it added.
