CTOS Digital’s most recent results have Kenanga optimistic
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00:00 Happy Halloween and today's not so spooky choice is CITOS Digital, which recently announced
00:06 its third quarter results and seems set for a more than solid year.
00:10 Kenangah already has an outperform on CITOS but upped its target price from RM1.80 to
00:16 RM1.85, which implies a possible 28% upside.
00:20 CITOS' nine-month normalised net profit of RM75.5 million was in line with both Kenangah
00:27 and The Street's estimates. A third interim dividend of 0.63 cent was declared and is
00:31 deemed to be within Kenangah's anticipated full-year payment of 2.61 cent. Nine-month
00:37 revenue rose by 33% as all key services reported stronger contributions.
00:42 CITOS' recently completed acquisitions of FinScore, The Philippines and Prime Analytics
00:47 Indonesia would open new avenues for the group in enlarging its credit scoring footprint.
00:52 Meanwhile, the group has at last obtained the extension of its tax relief for its pioneer
00:57 status for the five-year period up to 8 November 2026. Anticipating continued momentum from
01:04 its existing product portfolios, the group believes it could deliver a normalised profit
01:08 after tax of RM100-RM105 million for FY23, RM127-RM135 million for FY24 and RM150-RM160
01:18 million for FY25.
01:20 Shifting through the recent Bloomberg update on earnings, there are five buys and two holes
01:24 on CITOS. The average target price works out to RM1.73 and that is 28 cent more than its
01:30 last close.
01:31 [Music]