Cloudpoint’s earnings to be buoyed by robust order book of RM110mil


PETALING JAYA: CIMB Research is projecting Cloudpoint Technology Bhd’s three-year core net profit compounded annual growth rate at 19.5% for financial year 2024 (FY24) to FY27.

The research house said this would be backed by a robust order book of RM110mil extending into FY27, stronger contributions from its 75% stake in the UC Group, and resilient financial services industry information technology (FSI IT) spending, particularly in networking and cybersecurity solutions enabled by artificial intelligence (AI) and digitalisation

The research house also expected rising contributions from Cloudpoint’s high-margin professional IT services segment, which contributed 42.6% of its first half of financial year 2025 gross profit, that provided recurring income streams.

The acquisition of a stake in UC Group would expand Cloudpoint’s business operations, as it would enable the company to leverage on the group’s diverse client base, which includes financial services, telecommunications and government bodies, said the research house.

The move was also anticipated to unlock cross-selling opportunities and strengthen Cloudpoint’s position in Malaysia’s growing data centre market, it added.

The FSI remains Cloudpoint’s core earnings anchor, contributing more than 90% of its FY24 revenue through long-standing Tier-1 bank and insurer relationships, according to the research house.

“We expect FSI IT budgets to stay robust in a digital-driven era, driven by rising cybersecurity needs, ongoing digitalisation, and adoption of emerging technologies such as generative AI, advanced customer relationship management and regulatory technology.

“This positions Cloudpoint to broaden its wallet share as a one-stop solutions provider with a proven track record, allowing it to capture more contracts,” the research house added.

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