PETALING JAYA: The outlook for blockchain technology firm Zetrix AI Bhd continues to be promising, following the company’s first quarter ended March 31, 2026 (1Q26) results that came in within market expectations.
UOB Kay Hian Research, which maintained a “buy” call on the stock with a target price (TP) of RM1.56, said the company may be re-rated if several catalysts – such as better cashflow conversion, lower gearing after the spin-off of its web3 business as a special-purpose vehicle (SPV) and growing dividend yields following record earnings – can materialise.
“We understand that Zetrix intends to create an SPV which contains all Zetrix’s cross-border businesses on a layer-1 blockchain such as Ztrade, Robotics, Nur Al and others, with the aim of listing them on Nasdaq via a special-purpose acquisition company,” it said.
It said the SPV plans to raise US$100mil (RM396.5mil) for an estimated valuation of US$3bil in a pre-listing exercise.
“Following the completion of this exercise in 4Q26, the company may pare down debt and unlock value for existing shareholders and allow for better cashflow as capital expenditure may be largely reduced from the current RM800mil to RM1bil a year run-rate to RM400mil to RM500mil.”
BIMB Research said the company’s outlook has strengthened following the memorandum of understanding with the Shenzhen Data Exchange to develop an Asean-China data trading infrastructure, together with the mandatory social media age verification taking effect in June that should accelerate demand for digital identity solutions.
It believes the data trading infrastructure could expand future revenue streams via monetisation of regional datasets, including fees for data preparation into secure tradeable form and a percentage cut of transaction value while the firm’s MyDigital ID “is well-positioned for adoption given its integration with government platforms age verification”.
The research house has reiterated a “buy” call with an unchanged TP of RM1.30 while raising financial year 2026 (FY26) earnings forecast by 18.6%, with FY27 and FY28 forecasts raised 27.6% and 28.6% respectively, after adjusting margin assumptions as well as revenue generated from Zetrix’s blockchain.
MBSB Research, which has also maintained a “buy” call on the stock with an unchanged TP of RM1.24, views the outlook as promising based on 1Q26 results.
“At the current price point, dividend yield is attractive at more than 5%.
“The contribution from the provision of e-government services serves as a stable revenue base while the Zetrix platform serves as the group’s growth avenue.”
