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Saw the recent CLSA report on Zetrix and it feels like the market is still valuing it as a traditional e-government business, but the direction now looks quite different.
From what can be observed, they’re transitioning into an AI + blockchain infrastructure play (Avatar, ZTrade, digital ID etc.), and already ~65% of revenue is coming from blockchain + AI segments.
The interesting part is not just AI, but the “agentic AI + identity + transaction layer” angle. If AI agents can actually transact (not just chat), that’s a different business model altogether.
Also noticed the planned US SPAC listing for their AI/blockchain segment — if that goes through, could potentially unlock valuation vs current Malaysia listing.
Still early stage though, execution and adoption will be key. But feels like one of the few local names trying to position into the global AI narrative.
If anyone is interested can read more of the report here:
We lift our TP to RM1.60 from RM1.50 post our earnings hikes, and peg to just 10x FY26CL PE. Now trades at just 4.5x FY27CL PE as we believe market continues to underappreciate its blockchain/AI business segment.
Near-term catalysts include potential spin-off of its cross-border blockchain/AI via a US SPAC listing on Nasdaq (indicative >US$3bn valuation), management previously indicated that announcement could be in May 2026 and completion by end of 2026.
This could help unlock valuation multiple upsides for its blockchain segment and re-rate Zetrix’s listed patent co, based on its stakes (our SOTP scenario analysis in figure 3 showed a fair value of RM1.60).
We believe the market is underpricing Zetrix’s transition into a global agentic AI platform, with limited recognition of the valuation multiple unlock from its planned US SPAC-led spin-off exercise by end 2026, and World Bank-backed expansion.
Zetrix has launched its global blockchain-backed agentic AI platform, Avatar, with a China-focused platform to be launched by end May 2026 to tap into the fast- growing Chinese agentic AI market. For the global platform based out of Malaysia, the first major use case would be acting as political interface tool with voters (https://www.freemalaysiatoday.com/category/nation/2026/05/02/pkr-rolls-out-election-campaign-system-using-ai). Another catalyst include access to potential RM500m HRDF grant to train people to create One-Person-Company to use autonomous agent to generate income.
We also see the World Bank’s strategic investment in Zetrix as a key validation and distribution catalyst. We lift FY26-28CL EPS by 58-93% and our target price from RM1.50 to RM1.60. Reiterate O-PF.
