SRKK AI Berhad is positioned for strong growth as rising demand for cloud adoption, artificial intelligence (AI), data analytics and cybersecurity services supports its expansion strategy, according to a report by M+ Global.
The research house projected SRKK AI to achieve a three-year earnings compound annual growth rate (CAGR) of 15.7 per cent, with core profit after tax and minority interests (PATMI) expected to reach between RM8.1 million and RM10.5 million over the next three years.
M+ Global attributed the anticipated growth to expansion in the company’s cloud services and data analytics businesses, new advisory and training revenue streams from its AI initiatives, and further expansion of cybersecurity offerings.
The research house assigned SRKK AI a fair value of RM0.54 per share, representing a potential upside of 68.8 per cent from its initial public offering (IPO) price of RM0.32.
The valuation was based on a price-to-earnings (PE) multiple of 16.5 times, pegged against FY2027 forecast earnings per share (EPS) of 3.26 sen.
SRKK AI provides digital transformation solutions across Malaysia and Singapore, with its core businesses covering IT consultation and project implementation, cloud services, managed IT services, data analytics and business intelligence solutions, as well as IT hardware and software sales and rental.
Microsoft AI Cloud Partner Advantage
A key competitive advantage for SRKK AI is its status as the first Malaysian solution provider to secure all six Microsoft Solution Partner designations under the Microsoft AI Cloud Partner Program in April 2025.
The certifications cover areas including Azure infrastructure modernisation, data and AI model deployment, application development, Microsoft 365 productivity solutions, security and identity management, and Dynamics 365 business applications.
M+ Global said the achievement strengthens SRKK AI’s position in supporting enterprise digital transformation and AI adoption.
Cloud Services Emerging as Growth Driver
The cloud services segment is expected to remain a major contributor to SRKK AI’s growth.
Revenue from the segment recorded a three-year CAGR of 22.2 per cent, increasing from RM26.9 million in FY2022 to RM49.0 million in FY2025.
The company’s role as a direct bill partner under the Microsoft Cloud Solution Provider programme allows SRKK AI to purchase Microsoft cloud solutions directly and resell them to solution providers, resellers and IT managed service providers.
M+ Global said this provides SRKK AI with a structural advantage as Malaysian enterprises continue their migration towards cloud-based infrastructure.
AI Labs and Academy to Unlock New Revenue Streams
Following its IPO, SRKK AI plans to allocate RM4 million towards strategic AI initiatives, including the establishment of in-house AI Labs, an accredited AI Academy and proprietary data analytics solutions.
The initiatives are expected to expand the company’s exposure into higher-margin areas such as corporate AI training, advisory services and software licensing.
Leveraging its Microsoft AI Cloud Partner status, SRKK AI aims to provide workshops and accredited training programmes focused on Azure AI and Microsoft 365 Copilot frameworks.
Cybersecurity Expansion Through Proprietary SOC
SRKK AI is also strengthening its cybersecurity capabilities by developing its own Security Operations Centre (SOC).
Currently, the company relies on two outsourced SOC providers — one in the United States and another in Malaysia — to deliver managed cybersecurity services.
M+ Global said the planned investment of RM3.7 million from IPO proceeds to establish an internal SOC could allow SRKK AI to capture additional margins currently shared with external partners.
The move is also expected to improve response times and enhance customer retention within its IT managed services segment, supported by its existing 24/7 Network Operations Centre in Klang.
With increasing enterprise demand for AI adoption, cloud migration and cybersecurity protection, M+ Global believes SRKK AI is well-positioned to benefit from Malaysia’s ongoing digitalisation wave.
