CIMB Securities has maintained its BUY call on Cloudpoint Technology Bhd with an unchanged target price of RM0.53, expecting stronger earnings in the second half of 2026 as delayed financial services industry (FSI) and data centre networking projects begin contributing.
The research house said Cloudpoint’s 1HFY26 core net profit fell 38.1% year-on-year to RM6.4 million, accounting for 44.8% of its full-year forecast and 44.2% of consensus. CIMB deemed the results within expectations despite the relatively low first-half contribution as it expects a stronger second half.
The weaker performance was mainly due to a 37.4% year-on-year decline in enterprise and data centre networking revenue, while a less favourable sales mix and higher operating costs also squeezed margins. This came despite stronger contributions from cybersecurity, digital applications and cloud services.
However, 2QFY26 showed signs of recovery, with revenue rising 31% quarter-on-quarter while core profit jumped 124.5%, helped by contributions from CX One following its acquisition and stronger enterprise and data centre networking sales.
CIMB expects 2HFY26 earnings to benefit from delayed higher-margin FSI contracts, recognition of Cloudpoint’s RM140 million outstanding order book and higher contributions from Unique Central and CX One.
The research house also noted that Cloudpoint trades at 14.3 times CY27F earnings, below its historical mean of 19 times. It maintained the RM0.53 target price based on 15 times CY27F earnings.
As of 12.03 pm, the stock price rose 5.15% to RM0.51.
