Key takeaways from 2Q26 earnings call Quick Note

研报英文原文证据摘录

Key takeaways from 2Q26 earnings call Quick Note

Global Markets Research

CTOS Digital CTOS.KL CTOS MK 23 July 2026

EQUITY: SOFTWARE & SERVICES

RatingKey takeaways from 2Q26 earnings call Remains Neutral

Target price MYR 0.76 RemainsQuick Note

Closing priceManagement hosted an analyst briefing on 23 July post the release of 2Q26 results. 23 July 2026 MYR 0.69

Key takeaways from the call are as follows:

JurisTech monetisation enters its first phase

Management said that JurisTech (unlisted) is now considered a non-core investment after Research Analysts

the strategic synergies envisaged at acquisition failed to materialise, although the financial Malaysia Banks

investment performed reasonably well, with JurisTech’s profit recording a 14% y-y CAGR Tushar Mohata, CFA - NSM

between 2021 and 2025. According to management, the 10% stake sale values JurisTech tushar.mohata@nomura.com

at MYR500mn, or approximately 17x FY25 earnings, with almost all the MYR50mn +60(3)20276895

proceeds being returned through a MYR24.5mn special dividend and MYR24.5mn of Research Associates

share buybacks. CTOS intends to pursue an IPO or third-party sale of its remaining 39%

Malaysia Banksstake in JurisTech within 18 months, extendable by six months, and believes the eventual

Alpa Aggarwal, CFA - NSFSPLvaluation could exceed 17x earnings. If an exit does not materialise, CTOS retains the

option to repurchase the 10% stake for MYR50mn. Management is also reviewing the

strategic relevance of its other associates, which could create further value-unlocking

opportunities.

Management highlights earnings from continuing operations

According to management, the JurisTech disposal is expected to be broadly earnings-

neutral in FY26E, as the MYR1.6mn disposal gain should offset the estimated MYR1.6mn