CTOS Digital jumps after results as analysts flag weaker final quarter
Service disruptions following a cybersecurity incident are expected to weigh on earnings, while a tax incentive expires in November.
CTOS Digital Bhd shares gained up to 14% on Oct 29 after the credit reporting company posted higher quarterly earnings, although CIMB Securities and RHB Investment Bank expect a weaker final quarter because some services remain temporarily suspended.
The stock reached 44.5 sen, a gain of 5.5 sen. By 10.30am, it stood at 43 sen with close to 22 million shares traded, valuing the company at RM946 million. Despite the rebound, CTOS Digital has shed about 45% of its value year-to-date.
Net profit rose 11.5% year-on-year for 3QFY2026, which ended on Sept 30, 2026. CTOS Digital attributed the increase to revenue growth and contributions from associates. Earnings over the first nine months exceeded 80% of the full-year consensus forecast.
CTOS Digital disclosed on Sept 23 that an environment supporting its consumer business had been accessed without authorisation. Bank Negara Malaysia suspended CCRIS, the credit and loan database, disrupting products including CTOS Score. RHB Investment Bank expects business to recover swiftly when services resume and retained its ‘buy’ recommendation.
CIMB Securities retained a ‘hold’ rating and highlighted the November expiry of a tax incentive. It said the statutory corporate tax rate of 24% would apply, against an effective rate of about 8% to-date, with the profitability impact becoming more pronounced in 2027.
Among analysts tracked by Bloomberg, recommendations comprise five ‘hold’ and four ‘buy’ calls, with none advising ‘sell’. The average 12-month price target has declined to 64 sen.
