CTOS tracks growth in digital economy
KUALA LUMPUR: RHB Research maintained its "buy" call on CTOS Digital Bhd and target price of RM2.22 a share as the credit reporting firm posted strong growth in its key accounts and direct-to-consumer segments.
Over the first half of the year, the group's profit after tax, amortisation and minority interest (Patami) doubled to RM38.1mil from the same period of last year.
RHB said in a stock update the bottomline was boosted by full contributions from its acquisition in JurisTech, dividend income from RAM Holdings, and lower interest costs, which more than offset the hike in staff costs and IT support expenses.
Overall revenue grew 24% year-on-year (y-o-y) on robust demand for a range of its services, including CTOS Data Systems Reports, digital solutions, comprehensive portfolio reviews and analytics services from all three of its main market segment.,
"CTOS’ FY22 growth target is on track, as we believe it will continue to leverage on the expansion of the digital economy,
along with higher adoption and new solutions.
"The group will continue to develop its synergy opportunities in both Malaysia and Thailand via its various M&A plans as well as enhance its value proposition by bringing unique end-to-end digital lending solutions," said RHB.