Malacca Securities Sdn Bhd has initiated coverage on ACE Market-bound Pentech with a fair value of 40 sen, underpinned by the group’s end-to-end ICT capabilities, growing cloud and managed services exposure, and strong positioning within Malaysia’s accelerating digitalisation landscape.
The research house said Pentech differentiates itself through its in-house technical expertise in designing and integrating enterprise ICT infrastructure systems, allowing it to deliver full-suite solutions as a single point of service rather than relying on fragmented standalone offerings.
It also highlighted Pentech’s contractual brand independence despite partnerships with global technology leaders such as Dell, Lenovo, HPE, Microsoft, PureStorage and Fortinet, which gives the group flexibility to tailor solutions across hardware, software and services based on client requirements.
A key growth driver is the group’s rapid expansion in cloud and managed services, which posted a three-year CAGR of 40.1% and contributed 20.7% of FY25 revenue compared to 9% in FY22.
Malacca Securities expects this shift to accelerate further, supported by investments in a new 24/7 Security Operations Centre in Kuala Lumpur, upgraded operations command infrastructure and expansion into cybersecurity and artificial intelligence-driven cloud solutions, paving the way for more recurring, higher-margin income.
The research house also noted Pentech’s 20-year operating track record in Malaysia’s ICT sector, with strong capabilities in delivering complex, high-compliance systems for clients in regulated industries such as manufacturing, healthcare and financial services.
Although Pentech currently holds less than 1% market share in Malaysia’s ICT services market, Malacca Securities expects growth to accelerate, driven by national digitalisation initiatives including MyDIGITAL, the 13th Malaysia Plan and Budget 2026, which are expected to spur enterprise adoption of cloud and automation technologies.
Against this backdrop, Malacca Securities said Pentech is well-positioned to capture structural growth opportunities as it moves towards its ACE Market listing.
