BIMB Research said we have yet to factor in any earnings upside from MyDigital ID, due to its early-stage rollout and limited visibility.
PETALING JAYA: The requirement to register for MyDigital ID for Malaysians travelling abroad and the potential usage of this platform for age verification for social media restriction could create a new revenue stream for Zetrix AI Bhd.
“We believe this could open up a new revenue stream for Zetrix by accelerating the MyDigital ID user base towards the government’s initial 15 million target in 2025,” BIMB Research says.
“Monetisation is expected to be driven by per-user verification fees, whereby commercial service providers will be charged at a rate of RM0.40 per user per annum for identity verification.
“At this juncture, we have yet to factor in any earnings upside from MyDigital ID, due to its early-stage rollout and limited visibility,” the research house added.
According to the latest government directive, Malaysian citizens must register for MyDigital ID by Jan 15 this year to continue accessing National Integrated Immigration System (NISSe) services at the Sultan Iskandar and Sultan Abu Bakar complexes.
While signing up for MyDigital ID is not mandatory from a regulatory standpoint, authorities are encouraging adoption by embedding the platform into high-traffic services.
These include such as police summonses, Road Transport Department (JPJ) services, government payments, public housing services, travel-related facilities and government financial aid.
Officials are also exploring the use of MyDigital ID for age verification by restricting social media access for users below 16, involving platforms such as TikTok, Instagram, and Facebook.
In the third quarter of financial year 2025, Ztrade blockchain and artificial intelligence contributed 50% of the group revenue, with the remainder coming from legacy segments, mainly from e-government services such as JPJ and NISSe.
Within the blockchain segment, revenue is primarily driven by gas fees from credential verification for customs clearance in Malaysia–China trade, coupled with sales of Zetrix tokens.
“We gather that the total addressable market for bilateral Malaysia–China trade stood at about two million certificates per annum, of which Zetrix captured only 10% to 15% in financial year 2025 (FY25) as the platform was still in its pilot phase,” it said.
“However, as Zetrix transitions into full commercialisation in FY26 and manual filing is progressively phased out, we foresee adoption rate to accelerate meaningfully.”
BIMB Research on the whole is maintaining its “buy” recommendation of the stock with a lower target price of RM1.33 per share from RM1.82 previously.
“Assuming a 50% to 80% market share by FY26 and gas fees of Chinese Yuan 200 per transaction, this could translate into topline contribution of about RM116mil to RM186mil or 10% to 17% of the group revenue,” the research house added.
