Insights Analytics set for robust earnings growth, CIMB Securities starts coverage as stock surges to new highs

KUALA LUMPUR (Jan 5): Insights Analytics Bhd (KL:IAB) is set for robust earnings growth over the next three years, said CIMB Securities, as the stock surged to a new record on Monday.

Earnings at the Sarawak-based firm, which mainly provides asset management systems to water utilities, could grow 52% annually on average over the next three financial years, CIMB Securities said in initiating coverage with a ‘buy’ call. Gross margins, meanwhile, will stay at 52%-58%, the house noted.

“IAB is well positioned to benefit from government initiatives to reduce non-revenue water losses and drive digitalisation of water utilities,” CIMB Securities said in a note.

The initiation marks Insights Analytics’ first regular analyst coverage since its listing in October 2025. The stock surged as much as 31 sen or close to 27% to RM1.44. Investors who bought its shares during the initial public offering (IPO) and held on would have quadrupled their investment.

Malaysia has identified initiatives to combat non-revenue water — treated water that doesn’t reach consumers and fails to be billed — as one of the priority areas under the Water Sector Transformation 2040 road map and Budget 2026.

Insight Analytics is now expanding analytics and internet-of-things capabilities beyond water utilities into sectors such as transport, construction, and hospitality — a segment that produced gross margins of as high as 77% for the company.

“These trends point to sustained earnings momentum and improving cash flow visibility as IAB’s dual-engine model scales,” CIMB Securities said.

Insight Analytics’ current valuation is “undemanding” versus its target price of RM2.10, the research house said. There is also a scarcity premium, as the company is Malaysia’s only listed pure-play in digital water and intelligent asset management, the house noted.

“As a recently listed IPO, we believe IAB remains undervalued, as the market has yet to fully price in its dual-engine earnings profile, combining project-based water-technology execution with scalable, higher-margin digital platforms,” CIMB Securities said.