Cloudpoint’s CX One acquisition to boost earnings


PETALING JAYA: Cloudpoint Technology Bhd’s proposed acquisition of CX One Sdn Bhd for RM16.8mil is expected to enhance earnings and expand its existing capabilities, CIMB Research says.

The group recently proposed to buy a 100% equity stake in CX One, an enterprise solutions provider specialising in unified communications and customer experience integration.

The deal comes with a cumulative profit guarantee of RM7.5mil across the financial years 2026 to 2028 (FY26 to FY28).

“This implies an effective valuation of 6.8 times price earnings (PE), based on an average annual profit after tax of RM2.5mil over the period. Structurally, 50% of the consideration will be paid over the profit guarantee period, contingent on fulfilment of the profit guarantee conditions,” it added.

The research house views the acquisition as earnings-accretive, with the potential to raise its FY26, FY27, and FY28 earnings per share estimates by 3.8%, 7.1% and 6.8%, respectively, should the deal be completed by the targeted third quarter of FY26 (3Q26) and the profit guarantee is met.

Moreover, it said the transaction would serve to complement Cloudpoint’s information technology offerings, which currently include enterprise and data centre networking, cybersecurity, digital applications and cloud services.

With CX One’s established client base across public and private sectors that stretch across financial services, telecommunications, and aviation, a broader range of offerings would provide cross-selling opportunities across Cloudpoint’s customer base, improving customer stickiness.

CIMB Research has maintained its “buy” call on Cloudpoint, with a target price of 87 sen, trimmed down from RM1.05 previously.

Currently, the stock is trading at 9.3 times 2027 PE, representing a 45% discount to its historical mean since its initial public offering, and is supported by net cash of RM48.6mil as of end-4Q25.

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