KUALA LUMPUR: RHB has revised its earnings forecasts for CTOS Digital Bhd to 2.8 per cent and 6.9 per cent for 2024 and 2025 given its sustainable growth prospect from various digital solutions and analytical insights.
This is supported by the secular trend of digitalisation, recession-proof business model, solid earnings delivery, cash flow generation, and strong return-on-investments, said RHB Research.
"Our FY24-25 earnings forecasts are raised 2.8 per cent and 6.9 per cent as we factor-in the latest guidance and model upkeep exercises," it said in a note today.
RHB Research said CTOS' management remains optimistic on its growth trajectory for its core business, driven by higher average revenue per user from the rising adoption of digital solutions and in-depth analytical insights, plus on-boarding of new customers.
Continued innovation on advanced analytics and digital and fraud ID are set to drive growth.
According to RHB Research, a new digital lending platform, loan origination systems, a digital issuer platform with Bursa Malaysia, ESG ratings, SME credit ratings, and product expansion for corporates and SMEs are among the initiatives to drive growth at associate company level.
International operation expansion via new subsidiaries offers long-term growth potential for alternate data credit centric solutions, it added.
At the time of writing, CTOS' share price rose 2.84 per cent to RM1.45, pushing its market capitalisation to RM3.35 billion.