PETALING JAYA: CIMB Research has initiated coverage on Insights Analytics Bhd
(IAB) with a “buy” rating and a target price of RM2.10, citing multi-year earnings visibility supported by the ongoing water infrastructure upcycle and an “undemanding” valuation.
In a note yesterday, the research house said IAB offers investors a direct proxy to Malaysia’s digital water transformation, as it is the country’s only listed pure play in digital water and intelligent asset management solutions.
IAB is currently expected to be the sole non-revenue water (NRW) technology provider in Sarawak, supported by more than two decades of collaboration with the Rural Water Supply Department (JBALB) and former state agencies – Kuching Water Board, Sibu Water Board, and LAKU Management Sdn Bhd – which were consolidated into Sarawak Water Sdn Bhd in August 2025.
“With its strong foothold in Sarawak, we view IAB as a key beneficiary of Malaysia’s ongoing water sector transformation and digital infrastructure modernisation efforts,” the research house noted.
CIMB Research said IAB is “well positioned” to benefit from the ongoing water infrastructure capital expenditure (capex) upcycle, underpinned by Sarawak’s Water Supply Master Plan and nationwide NRW reduction initiatives.
This is supported by IAB’s proprietary IntelliWater System (IWS) and Intelligent Asset Management Solutions (IAMS) platforms.
Its IWS delivers end-to-end digital water management solutions, while IAMS extends analytics and Internet of Things capabilities into sectors such as transport, construction, and hospitality.
With Sarawak Water entering its implementation phase, the consolidation should streamline governance and accelerate the Water Supply Master Plan, which aims for 100% water coverage by 2030, up from 71% in rural areas.
The plan involves over RM20bil in investment, including RM1.1bil to replace 2,740km of ageing pipelines.
“We expect stronger execution and a faster rollout following the temporary moderation in IAB’s water technology revenue from financial year 2022 (FY22) to FY25, which was driven by slower project implementation during the state’s agency consolidation,” CIMB Research said.
“IAB’s incumbency and proven deployments provide a clear first-mover advantage in upcoming tenders.”
Yesterday, IAB rose 33 sen or 29.2% to close at RM1.46 a share.
