Zetrix AI Berhad - Powering the Next Digital Frontier
Fri, 08-Aug-2025 07:54 am
by Research Team • Apex Research

Counter

ZETRIX (0138)

Target Price (RM)

1.360

Recommendation

Not Rated

  • Zetrix AI Berhad (formerly MyEG Services Berhad), has transformed into Malaysia’s leading digital services provider, offering an extensive suite of solutions for both government and commercial sectors. With operations spanning Malaysia, the Philippines, and China, the Group plays a pivotal role in driving the digitalisation of mission-critical services.

  • Having evolved from its roots in e-Government service delivery, the Group has repositioned itself as a next-generation tech platform, integrating its proprietary Layer-1 blockchain (Zetrix), AI-driven automation, and cross-border digital identity solutions.

  • We forecast a three-year CNP CAGR of 8.9%, supported by (i) growing adoption of ZTrade, ZCert and ZID across public and private sectors; (ii) regional expansion of Zetrix-powered services in ASEAN; and (iii) increasing integration of biometric verification and AI-enhanced smart contracts.

  • Applying a 12.8x P/E multiple to our FY26F EPS estimate of 10.6 sen and factoring in a three-star ESG rating, we derive a fair value of RM1.36 (Not Rated).

 

Investment Highlights

Key Enabler of Malaysia’s Digital Identity Ecosystem. Zetrix AI is a strategic partner of MyDigital ID, Malaysia’s official digital identity initiative. It is designed to work alongside the MyKad and enables single sign-on (SSO) access to various government and private sector digital services. The Group supports the platform via its Layer-1 public blockchain, ensuring secure and immutable identity records. It is also co-developing the MyDigital ID superapp with MyDigital ID Solutions Sdn Bhd, a wholly-owned subsidiary of MIMOS Technology Solutions Sdn Bhd (MIMOS), enabling digital credential verification across the ecosystem.

 

Accelerate Cross-Border Trades. Zetrix AI has also expanded the coverage of its ZTrade service, a Web3 platform built to digitalise and streamline cross-border trade documentation between Malaysia and China. The expansion includes digital verification of Certificates of Origin (COOs) issued by the General Administration of Customs of China (GACC). This eliminates manual process and accelerates customs clearance. The service is also built to support smart contracts and complementary services such as supply chain financing, insurance and digital settlement.

 

Earnings Resilience amid Transition. Although no longer directly involved in foreign worker permit renewals, Zetrix AI remains exposed to the segment via its teaming agreement with Heitech Padu (HEIT), under the National Integrated Immigration System (NIISe) project. With the service contributing ~5% of revenue, earnings impact is expected to be minimal. 

 

Upside from NIISe and Blockchain Integration. HEIT, 19.2%-owned by Zetrix AI, secured the RM892.2m NIISe contract, which replaces the legacy Malaysian Immigration System (MyIMMs). Initially expected to be completed by 2028, the Immigration Department is set to begin using the system coming October. The NIISe superapp will run on Malaysia Blockchain Infrastructure (MBI), co-developed by Zetrix AI and MIMOS. Additionally, the Group will also continue to offer its ancillary solutions on the new superapp, supporting long-term earnings visibility.

 

Valuation & Recommendation. We derive a fair value (FV) of RM1.36 (Not Rated) based on a 12.8x P/E multiple applied to our FY26F EPS of 10.6 sen, and incorporate a three-star ESG rating. The assigned multiple represents 0.5 standard deviation below its 5-year average, reflecting a prudent stance given the Group’s evolving earnings profile and early-stage monetisation of its Web3 and AI platforms. While we recognise Zetrix AI’s growing relevance in digital identity and cross-border trade infrastructure, we believe a modest discount is warranted to account for execution risks and the need for sustained traction in commercial adoption.

 

Risks. Concession renewal risk, change in regulatory or government policies and execution risk on new initiatives due to rapid emergence of new technologies.

Read more details in:

Disclaimer

The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.

Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

Apex Securities Berhad does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against Apex Securities Berhad. Apex Securities Berhad may from time to time have an interest in the company mentioned by this report. This report may not be reproduced, copied or circulated without the prior written approval of Apex Securities Berhad.

Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.211471 4.242991
EUR 4.925671 4.928468
CNY 0.591411 0.591748
HKD 0.539992 0.543582
SGD 3.269964 3.291587