KUALA LUMPUR: LGMS Bhd is poised to benefit significantly from the recently-passed National Cyber Security Bill, which is expected to drive demand for cybersecurity solutions in Malaysia.
The bill, passed by the Dewan Negara on 3 April, aims to bolster national cybersecurity and protect Malaysia's digital infrastructure from cyber threats.
Hong Leong Investment Bank Bhd (HLIB) said the legislation mandates compliance with the National Critical Information Infrastructure (NCII) cybersecurity standards across various sectors including government, defence, banking and finance.
Companies failing to meet these standards face fines and potential imprisonment for their directors.
"Given this regulatory landscape, LGMS stands to be one of the prime beneficiaries from the passage of the cybersecurity bill," said HLIB equity research analyst Sam Jun Kit in a report today.
"Notably, LGMS is one of the region's leading cybersecurity firms, anchored by its three primary business pillars: cyber risk prevention services, cyber risk management and compliance services, and cyber threat and incident response services," he added.
He noted that within the prevention services segment, LGMS offers vulnerability assessment and penetration testing to identify vulnerabilities and cyber threats, providing relevant recommendations to address identified loopholes.
"It is worth noting that vulnerability assessment and penetration testing are rarely kept to a one-time effort only," said the research report.
LGMS' credentials include multiple international certifications and recognitions, such as from the International Data Corporation and as a registered ethical security tester.
On the stock market, LGMS is approaching a potential breakout above its previous high of RM1.43, with upside targets set at RM1.46-RM1.52-RM1.62.
HLIB urged investors to consider a cut loss at RM1.14, with a collection range between RM1.23 and RM1.35.