Company Coverage
CTOS Digital (CTOS MK): 3Q26: Within Expectations; Trudging Across Choppy Seas
HOLD (Maintained)
Current price:
Target price:
Upside:
Previous TP :
RM0.39
RM0.48
23.1%
RM0.78
Analyst
Highlights
- Results came in broadly within our expectations on a commendable qoq and yoy improvement.
- CTOS has contained the cybersecurity incident, but affected credit reporting services remain suspended following BNM’s suspension of CCRIS access, with restoration subject to independent validation.
- The disruption affects approximately 35% of weekly revenue (RM2.5m), reducing PATAMI by RM1.3m for each additional week of downtime, with an estimated total 2026 PATAMI impact of RM16m.
- Cut earnings by 16-18% to reflect earnings impact from the disruption, potential customer attrition and additional cybersecurity costs. Maintain HOLD with lower target price of RM0.48.
Analysis
- Broadly within expectations. CTOS Digital’s (CTOS) 3Q26 core net profit came in at RM27.5m (+22% qoq, +14% yoy), bringing 9M26 core net profit to RM68.5m (+12%), accounting for 71% and 82% of both our and consensus full-year estimates respectively. CTOS has declared a third interim dividend of 0.70 sen.
Highlights
- Results came in broadly within our expectations on a commendable qoq and yoy improvement.
- CTOS has contained the cybersecurity incident, but affected credit reporting services remain suspended following BNM’s suspension of CCRIS access, with restoration subject to independent validation.
- The disruption affects approximately 35% of weekly revenue (RM2.5m), reducing PATAMI by RM1.3m for each additional week of downtime, with an estimated total 2026 PATAMI impact of RM16m.
- Cut earnings by 16-18% to reflect earnings impact from the disruption, potential customer attrition and additional cybersecurity costs. Maintain HOLD with lower target price of RM0.48.
Analysis
- Broadly within expectations. CTOS Digital’s (CTOS) 3Q26 core net profit came in at RM27.5m (+22% qoq, +14% yoy), bringing 9M26 core net profit to RM68.5m (+12%), accounting for 71% and 82% of both our and consensus full-year estimates respectively. CTOS has declared a third interim dividend of 0.70 sen.
HOLD (Maintained)
Current price:
Target price:
Upside:
Previous TP :
RM0.39
RM0.48
23.1%
RM0.78
Analyst
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
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