PETALING JAYA: There is optimism tinged with caution on the outlook for credit reporting firm CTOS Digital Bhd
, which released its fourth-quarter ended Dec 31, 2025 (4Q25) and full-year (FY25) results last Thursday.
The company reported net profit that grew 38% in 4Q25 compared to the same quarter in 2024 due to a one-off gain following the sale of its 26% stake in Experian Information Services (M) Sdn Bhd, while revenue gained 14.5%.
For FY25, net profit was marginally lower than FY24, while revenue was up 7%. The company also declared a fourth interim dividend.
RHB Research has maintained a “buy” recommendation on the stock with a target price (TP) of RM1.11.
“We expect CTOS to return to a growth trajectory in FY26, underpinned by key product rollouts across the commercial and key account segments, including solutions in fraud detection, income verification and credit validation, alongside continued customer acquisition,” it added.
UOB Kay Hian Research has maintained a “hold” recommendation with an unchanged TP of 95 sen, as it noted that CTOS management expects growth to resume in 2026, underpinned by steady execution in the key account segment with new products slated to launch soon.
“The commercial and direct-to-consumer segments are also expected to recover with higher volume growth,” it said.
Hong Leong Investment Bank (HLIB) Research said the company’s outlook “is underpinned by a strategic shift towards double-digit growth, with management set on an earnings target of RM95mil to RM100mil”.
The company intends to mitigate the earnings gap from the divestment of Experian through margin expansion derived from artificial intelligence (AI)-driven automation and the completion of its cloud migration.
The brokerage has revised FY26 earnings lower by 1.9% and FY27 by 1.8%, while maintaining a “hold” call and lowering the TP to 91 sen from 92 sen.
CIMB Securities Research has maintained a “buy” rating on the stock with an unchanged TP of RM1.20, as it expects the company to return to positive earnings growth in FY26 underpinned by new product take-up in decision analytics as well as identity and fraud services, alongside improved operating efficiency from infrastructure modernisation and AI adoption.
