Can Insights Analytics Conquer West Malaysia?

 

Insights Analytics Berhad (IAB) made a successful debut in the ACE market on 27 Oct25.

Its share price opened at 62sen, which was 72% higher than its IPO 36sen and reached a height of 73sen. It closed at 65.5sen with an impressive 82% gain on day one.

On 7 Nov25, its share price has rallied to 81.5sen.

IAB is a Sarawak-based water technology solution provider established in 2003.

Its IPO price of 36sen seems reasonable with a PE ratio of 10.4 based on FYE2025 (ended Apr25) PAT of RM19mil and enlarged shares of 550mil after IPO.

However, there was a 175% jump in PAT from RM6.9mil in FY24 to RM19mil in FY25, which might make some investors cautious.

Was there any one-off gain in FY25? Was the superb net profit growth sustainable?

Its annual revenue in FY24 actually dropped even though net profit rose, which is also a concern.

Could it be like some other IPOs in which profits straight away dropped after IPO and the share price went to Holland?

The significant jump in revenue and profit in FY25 was mainly due to the new business segment "Intelligent asset management solutions (IAM)" since FY24, as shown below.

IAB has only 2 business segment: water technology solutions and intelligent asset management solutions (IAM).

When the IAM segment was first introduced in FY24, it made up 31.9% of the group's total revenue but the percentage increased to 68.4% in FY25.

This rapid rise in IAM sales was contributed by the IntelliConstruct system which by itself made up 52.2% of the group's total revenue of RM49.6mil.

Revenue from water technology solutions fluctuated throughout the years and recent FY25 registered the lowest revenue in the last 4 years.

Investors wonder how much IAB can still grow from here and its FY26Q1 result, which was released a week before the IPO listing date, definitely gave some positive guidance.

I think this is why its share price climbed more than 100% on its debut day.

Its single quarter FY26Q1 revenue of RM28.7mil & PAT of RM9.3mil were already more than 50% of its FY25 whole year revenue and PAT of RM49.6mil and RM19mil respectively. 

This means the EPS for its FY26Q1 is 1.7sen (550mil shares).

If we simply annualize the EPS to 6.8sen, and give it a fair PE ratio of only 10x, its target price will be 68sen.

Nevertheless, the question is, can IAB replicate its impressive FY26Q1 result?

Lets break down its FY26Q1 revenue according to business segment.

The rise in revenue in FY26Q1 was mainly contributed by Water technology solutions segment at RM17.3mil. This figure is already higher than FY25 whole year revenue of RM15.7mil in the same segment.

Looking at the past history, I don't think IAB can register such revenue consistently for the next 3 quarters, as it depends on job availability and completion timing.

Its IAM segment revenue of RM11.38mil was 23% of FY25 whole year revenue of RM49.6mil. Thus it seems like no growth but of course it's too early to tell.

In the quarter report, the management put on "revenue by geographical market" with Malaysia & Overseas as its market but overseas didn't contribute anything yet.

Does it mean that IAB will have overseas revenue in FY26? I think it's better to report the geographical revenue by East & West Malaysia.

Anyway, its FY26Q2 result will be announced in Dec25.

I think its upcoming quarter result might be poorer QoQ, due to lower profit from water technology solutions and also the listing expenses. Its share price might take a hit.

If its share price drop, then I might have a chance to collect more, if the overall growth potential is still there.

As mentioned earlier, IAB is a Sarawak company and generates almost all its sales from Sarawak.

Now it plans to spread its wings to West Malaysia, which means there is good potential for business growth.

Will IAB successfully set its footings in West Malaysia? What are its competitive strength and who are its competitors?

From the market research report in the IPO prospectus, there seems no other "strong" competitors but I doubt that it is the real picture.

IAB uses IoT, AI, cloud computing and data analytics for its water and asset management solutions. I don't think only IAB has such expertise in Malaysia.

It might be a dominant force in Sarawak but it will be very different in other states.

Non-revenue water (NRW) is always a big issue in our country. 

NRW refers to water that is produced but lost before it can be billed to customers, usually caused by leaking water pipes.

According to report, Malaysia's 2023 NRW average was 37.1%, costing over RM2bil annually. The loss is estimated to reach RM4.05bil by 2030.

The government aims to reduce the NRW to 31% by the end of 2025, and 28.8% by 2030.

Budget 2026 allocated RM3bil to improve the NRW under the 13th Malaysia Plan, and IAB might benefit from it.

IAB helps to detect leaking pipes, manage water pressure and it can even act as a contractor to replace the pipes.

Besides IAB, there are also other listed and private companies involved in NRW reduction job.

Ranhill is a prominent utility player involved in both power and water industries. In water industry, its capabilities range from water production, water distribution, NRW reduction and wastewater treatment.

It covers almost everything in water industry, and is a sole integrated water operator in Johor. It uses its in-house AquaSMART system to detect leakage and manage NRW.

YTLPower has acquired a controlling stake (53.19%) in Ranhill in 2024.

Salcon & Taliworks are other smaller listed water infrastructures contractors. NRW reduction should be part of their capabilities. 

Cosmos Technology International Berhad is also a listed company offering various global branded products for intelligent water management systems and AI-driven NRW solutions across Malaysia.

Tokyo-based Tenchijin which has started its operation in Malaysia last year, has its KnoWaterleak platform which uses satellite data and ground sensors to detect possible leakages in the pipes.

Air Selangor which is the largest water services provider in Malaysia, collaborates with a local company Cubiq Meters to introduce digitalized water management with the installation of Kamstrup smart meters.

Cosmos, Tenchijin & Cubiq Meters seem to do the same thing as IAB does in its water technology solutions business.

As for IAB's IAM segment, the major growth was contributed by IntelliConstruct System which is apparently used by construction sector.

I'm not sure how helpful this system is, but if it's so good that all construction companies want it, then it will be a phenomenal growth.

However, the sales of IntelliTrack, IntelliHotel & IntelliRoad systems dropped in FY25 which is not that good.

I think IAB will expand its Intelli-system to cover all other aspects to increase efficiency & productivity either in manufacturing sector or smart city solutions.

Surely there are other companies providing similar service in Malaysia. Bursa-listed Gohub (transportation) & Itmax (Smart City) might be some of them.

RedPlanet Group, listed in the LEAP market, provides Geospatial solutions (GIS) to help customers to improve efficiency, productivity and profitability. 

ARB IOT Group which is a subsidiary of ARB Berhad (a 3sen stock in Bursa), is a Malaysia company currently listed in Nasdaq. It provides solutions to clients with the integration of trending technologies such as IoT, AI & cloud computing. It is operating at a loss though.

IAB might need to compete with such companies. The best and most cost effective solution (and perhaps political ties) will win.

It's worth noting that IAB is building its own small data center within its new HQ to serve its customers, which might be an advantage for it.

Overall, I think IAB is a company with potential to grow.

The market might give such AI-related company higher valuation as well.

However, its growth will depend on how successful it can penetrate West Malaysia market.