Latest news with #CTOSDigitalBhd
New Straits Times
2 days ago
- Business
- New Straits Times
CTOS' latest interim results fall short as firm lowers FY2025 revenue guidance
KUALA LUMPUR: CTOS Digital Bhd's first half of 2025 (1H25) results fell short of expectations due to the pressure from a weaker gross margin in the second quarter due to an unfavourable sales mix, said CIMB Securities. The results reached just 35 per cent of CIMB Securities's and 33 per cent of consensus full-year forecasts. "CTOS declared a second interim dividend per share (DPS) of 0.65 sen, bringing 1H25 DPS to 1.09 sen - below our expectations. "Meanwhile, net profit declined 22.4 per cent year on year (YoY) to RM36.7 million in 1H25, weighed down by the less-favourable sales mix and higher operating costs," it said in a note. CIMB Securities said CTOS had lowered its financial year 2025 (FY25) revenue guidance to RM320 million from RM352 million and its FY25 net profit forecast to RM87.5 million from RM120.5 million at the mid-point. This implies a 19 per cent YoY decline in net profit in FY25F, down from the previously guided 11 per cent growth. "The downgrade reflects delays in project conversion due to extended sales cycles, a strategic shift to exit low-yielding projects, and a change in several customers' spending patterns. "While ongoing cost optimisation efforts should support a rebound in 2H25, earnings are still expected to remain below 2H24 levels," it said. CIMB Securities cut its FY25 to FY27 earning per share (EPS) estimates by 24–32 per cent to reflect a less-favourable sales mix. This is due to slower conversion in the higher-margin key account and commercial segments, as well as higher tax expenses starting FY26. "CTOS' pioneer tax status is set to expire in November 2026, which may lead to higher effective tax rates in FY27. We now forecast a 26 per cent YoY net profit decline in FY25, followed by a recovery to 13 per cent growth in FY26. "With the downward revisions to our earnings forecasts, we downgrade the stock to Hold from Buy with a lower target price of 90 sen," it added.
New Straits Times
5 days ago
- Business
- New Straits Times
CTOS' Q2 earnings drop 17pct to RM21.61mil, revenue rises
KUALA LUMPUR: CTOS Digital Bhd's net profit fell 17 per cent to RM21.16 million in the second quarter of June 30, 2025 (2Q25) from RM25.5 million a year ago. Its quarterly revenue, however, increased to RM79 million from RM76.64 million previously, driven by stronger contributions from the key accounts, commercial and direct-to-consumer segments. CTOS' earnings per share of fell to 0.90 sen from 1.10 sen in 2Q24. In the first half of the year ended June 30, 2025 (1H25), CTOS registered a lower net profit of RM35.6 million from RM46.32 million a year ago, while revenue rose to RM155.07 million from RM148.22 million. The company declared a second interim single-tier dividend of 0.65 sen per ordinary share in respect of the three-month period ended June 30, 2025, which will be paid on Oct 24, 2025. This translates to a payout ratio of 71 per cent for the quarter, while the entitlement date for the dividend payment is Sept 26, 2025. CTOS interim group chief executive officer Kevin Loh said it continues to see positive revenue growth as it intensifies efforts to deepen market penetration both in Malaysia and across the region. "In 1H25, we undertook a series of initiatives across the company to optimise our cost structure and deploy resources more effectively. "These initiatives form part of our broader strategy to enhance operational efficiency and strengthen our foundation for sustainable long-term growth," he added. Loh said the company has made meaningful progress in product innovation, with several new solutions launched to address the evolving needs of its clients. "Our associate companies are also performing well. Notably, JurisTech continues to gain strong traction, supported by a growing orderbook and an expanding regional presence," he added.
The Star
5 days ago
- Business
- The Star
CTOS posts 2Q net profit of RM21.16mil
PETALING JAYA: CTOS Digital Bhd remains cautiously optimistic about its growth prospects for 2025, underpinned by product innovation, targeted marketing and ongoing efforts to improve operational efficiency across its business segments. The group said its key accounts division is expected to benefit from higher adoption of digital and analytical solutions, while its commercial segment will continue to focus on customer acquisition and retention. Meanwhile, the direct-to-consumer segment aims to deepen engagement with Malaysia's 16 million credit-active consumers through partnerships, financial literacy initiatives and targeted campaigns. 'The international business segment is also expected to continue contributing positively to the group's financial performance,' CTOS said, adding that it remains committed to delivering sustainable growth in the periods ahead. For the second quarter ended June 30, 2025 (2Q25), CTOS reported a net profit of RM21.16mil, down from RM25.5mil a year earlier. This translated to a lower basic earnings per share (EPS) of 0.9 sen compared with 1.1 sen in the same quarter last year. Quarterly revenue rose to RM79mil from RM76.6mil in 2Q24, supported by stronger contributions from the group's Malaysian business. The growth was largely driven by increased demand for digital reports and digital solutions across both local and international markets. For the first half of the financial year ending Dec 31, 2025 (1HFY25), the group posted a net profit of RM35.6mil or EPS of 1.5 sen, compared with earnings of RM46.32mil or 2 sen EPS it recorded for 1HFY24. Revenue for the six-month period climbed 4.6% on-year to RM155.07mil. CTOS said segment profit from its Malaysian operations fell to RM36.8mil, primarily due to increased operational expenses. Its international operations, comprising alternative data credit scoring businesses in Indonesia and the Philippines, recorded improved performance, with revenue and profit rising to RM20.2mil and RM1.5mil respectively in 1HFY25, supported by continued growth in client consumption. CTOS declared a second interim dividend of 0.65 sen per share for the financial year ending Dec 31, 2025, payable on Oct 24.
New Straits Times
28-04-2025
- Business
- New Straits Times
CTOS earnings miss expectations, target price cut to RM1.30
KUALA LUMPUR: CTOS Digital Bhd's earnings fell below expectations due to elevated cost pressures from sales team expansion, a right-sizing exercise and an unfavourable sales mix, said CIMB Securities Research. The firm said CTOS's first quarter (Q1) financial year 2025 (FY25) results achieved only 12 per cent of both its and consensus estimates. "Core net profit declined 31 per cent year on year (YoY). While CTOS remains confident of achieving its 10–15 per cent profit after tax growth target for 2025, we see rising uncertainty as the escalating tariff war could dampen credit services consumption by banks," it said in a note. Despite the softer Q1 performance, CTOS is maintaining its sales and net profit growth guidance for FY25, supported by a resilient pipeline heading into the next two quarters. CIMB Securities said CTOS's earnings are typically stronger in the second half of the year, driven by the cyclicality of certain business lines and longer delivery timelines for newer key account products. Nevertheless, the firm has revised down its FY25 to FY27 earnings per share (EPS) forecasts by 4–12 per cent to reflect risks of a slowdown in economic activity, particularly from the escalating US-China trade dispute, which could soften loan growth in the Malaysian banking sector. "While we anticipate a potential uptick in credit monitoring activities, this could be partially offset by a decline in new loan originations," it said. CIMB Securities maintained its 'buy' rating on CTOS but lowered its target price to RM1.30. "Potential downsides include extended delays in new product launches, a longer-than-expected gestation period for regional expansion, data security breaches, and potential changes in government policy," it added.
New Straits Times
25-04-2025
- Business
- New Straits Times
CTOS Digital CEO to exit in September, Q1 profit falls 31pct
KUALA LUMPUR: CTOS Digital Bhd has announced that group chief executive officer (CEO) Erick Hamburger will step down, with his last day of service set for Sept 30, 2025. Hamburger will begin his leave on May 1, the group said in a filing with Bursa Malaysia today. In the interim, board member Loh Kok Leong has been appointed group CEO effective the same date and will also be redesignated as executive director. "Since joining the group in 2021, Hamburger has contributed to CTOS Digital's growth and development," the filing said. "The board extends its sincere appreciation to Hamburger for his leadership over this period and wishes him continued success in his future endeavours." The announcement comes as CTOS Digital reported a 6.3 per cent year-on-year rise in revenue to RM76.1 million for the first quarter ended 31 March 2025. However, net profit fell 30.6 per cent to RM12.44 million. The firm declared a first interim single-tier dividend of 0.44 sen per share, representing a 70 per cent payout ratio. The dividend will be paid on July 23, with the entitlement date set for June 25. Hamburger said the group continues to see strong growth prospects both in Malaysia and across the region, particularly as financial institutions adopt more advanced credit analytics. "Innovation remains central to our strategy, and several product enhancements and new solutions are scheduled for launch in 2025," he said. He added that cost optimisation measures are underway, with expectations of improved cost-to-income ratios in the quarters ahead. CTOS Digital is Malaysia's leading credit reporting agency, with operations in Thailand, the Philippines and Indonesia. It serves a wide base of financial institutions, corporations, small and medium enterprises, and over four million individual users.
