PETALING JAYA: ICT Zone Asia Bhd
’s order book may reach RM400mil by the end of financial year 2027 (FY27) and it had an unbilled order book of RM293mil as at the end of January 2026, according to TA Research.
ICT has already secured RM45mil in new TechFin contracts in January 2026, tracking towards the research house’s RM200mil replenishment projection.
It said ICT enters FY27 with RM106mil in locked-in TechFin revenue and RM41mil in announced trading contracts already in hand, providing a strong earnings foundation at the start of the financial year.
TA Research made no changes to its earnings estimates. The research house reiterated its “buy” recommendation with a target price of 31 sen a share, based on the same target price earnings ratio of 11-times 2026 earnings per share.
TA Research favours ICT for its recurring contract-backed earnings, unique multi-lifecycle model that enhances margins and capital efficiency, and structural tailwinds from the government’s ongoing digitalisation agenda.
To reduce over-reliance on bank borrowings, ICT is exploring a medium-term notes issuance in tranches of RM30mil to RM50mil at 7% per annum over five years (syariah-compliant).
This longer-term structured funding is aimed at better matching the three to five-year tenure of TechFin contracts.
Meanwhile, it said hardware prices have surged materially, with DDR5 RAM alone rising three times (RM300 to RM1,000 per 16GB stick), and similar pressures extending to server and storage components, all driven by artificial intelligence data centre demand crowding out end-device supply.
Further price adjustments are expected every two months, with normalisation only anticipated by mid-2027.
On the funding front, its management was clear that funding is not an issue for FY27.
This is on improved bank relationships post-ACE Market listing providing adequate capital runway to support its RM200mil new TechFin contract target.
This is pushing customers with fixed budgets away from outright capital expenditure purchases toward operational expenditure/rental models, directly benefiting ICT’s TechFin business.
