CIMB Investment Bank Bhd (CIMB Securities) maintained its BUY call on Insights Analytics Bhd (IAB) with an unchanged target price of RM1.95, implying about 31.8% upside, as analysts said a RM4.2 million legal settlement and strengthening intelligent asset management solutions (IAMS) outlook are expected to support earnings recovery and reduce operational uncertainty.
CIMB Research analyst said IAB’s settlement with Place2Stay over a RM8.5 million claim was positive for the group, noting that the agreement, formalised through a consent judgment at the High Court of Kuching, allows IAB to pay RM4.2 million while securing full rights to three disputed source codes.
The house said the resolution removes a key overhang on the IAMS segment, with the acquired source codes expected to support smaller-scale projects while the group focuses on scaling its in-house platform and digital twin capabilities for larger contracts, particularly from government-linked entities.
The analyst added that IAB’s newer digital infrastructure and partnerships should enhance its ability to secure higher-value projects and improve margins over time, while also supporting cash flow recovery after a period of weaker performance in its IAMS division.
According to CIMB, IAMS revenue declined 49.9% year on year to RM18.4 million in FY2026, with the second half contributing only 17.9% of full-year revenue, highlighting the need for a turnaround in the segment.
Despite this, the research house said it had already factored in a recovery in IAMS contribution for FY2027 to FY2029 and therefore made no changes to its earnings forecasts, keeping its valuation basis unchanged at 18.5 times CY2027 forward earnings.
CIMB said it continues to view IAB as a scarce listed proxy for digital water management and infrastructure digitalisation, supported by its Sarawak positioning and exposure to smart infrastructure opportunities, adding that the stock remains attractively valued relative to its growth profile.
As of 11.37 am, the stock price remains unchanged at RM1.52.
