Agmo: Can This Malaysian App Builder Become an AI Giant?

Agmo is a Malaysian digital solutions provider, with its main revenue derived from mobile and web application development. Other revenue streams include subscriptions, technical support, and platform-based services (such as Vote2U and Agmo Loyalty).

The company reported healthy revenue and profit growth from 2020 to 2025. However, its ROE declined from 30% in 2020 to 18% in 2025, primarily due to an enlarged equity base following its 2022 IPO.

Post-IPO, revenue growth has moderated while gross margins have remained relatively stable. However, the SGA margin has risen from 8.5% in 2023 to 12.5% in 2025, suggesting that ROE could come under further pressure unless Agmo reignites top-line growth and improves cost discipline.

Agmo is building internal AI infrastructure, positioning itself as a national leader through MerdekaLLM. It is also scaling into enterprise AI services via strategic partnerships and a new JV. This multi-faceted approach—from infrastructure to applications—reflects a deliberate push to transition from an app developer to an AI solutions provider.

Agmo’s pivot into AI infrastructure and sovereign LLMs is strategically compelling and could open up new high-value enterprise and platform revenue streams. However, given the rising operating cost base and the early-stage monetisation of its AI initiatives, it remains uncertain whether this will meaningfully reverse the slowdown in revenue growth or drive margin expansion in the near term.

The company currently trades at an Acquirer’s Multiple (EV/EBIT) of about 12. This sits comfortably within the Malaysian ICT software and services range of 9 to 15, but remains well below the global software sector, where multiples typically exceed 20. But you should consider whether the Malaysian software market offers comparable growth prospects to justify a rerating to global valuations.

ITMax: This AI-Powered Infra Player Just Doubled Profits — But Can It Keep Up?

ITMAX is an integrated digital infrastructure provider for smart cities, embedding AI primarily in its video analytics, traffic flow optimization, and predictive maintenance systems. Its proprietary AI-driven platforms interpret data from surveillance cameras, traffic sensors, and lighting networks to enable automated responses and more efficient urban management.

The AI is not the business by itself, but a critical enabler inside ITMAX’s smart surveillance, traffic, and maintenance systems, improving operational efficiency, automation, and customer lock-in.

Since its 2022 IPO, ITMAX has doubled both its revenue and PAT. However, gross margin has declined from 73% in 2022 to 61% in 2024, partially offset by improved operating leverage with SGA margin down to 15.5% versus 18.4% in 2020. ROE has stabilised at around 22%.

The key question is whether ITMAX can sustain its strong revenue momentum. It has a proven track record with Malaysian municipal governments, securing long-term contracts (e.g., 15-year smart traffic and surveillance deals in Johor). While the business remains concentrated in Klang Valley, it is expanding rapidly into Johor, Penang, and other states. As of FYE 2024, its order book stands at RM1.4 billion, locking in revenues until 2040.

ITMAX is well-positioned to maintain healthy double-digit growth (likely in the 15–20% range) over the medium term, driven by secured contracts, cross-selling opportunities, and expansion into new councils. That said, the exceptional 42% CAGR achieved from 2022–2024 was largely fueled by large upfront system deployments, which will taper into steadier service-driven growth.

Strategically, ITMAX is best understood as a regional operator of AI-enabled smart city infrastructure networks, providing end-to-end design, deployment, and long-term operation of public surveillance, traffic, and lighting systems. This is akin to a micro-scale Motorola Solutions or Hexagon urban division, but with direct ownership of underlying fibre and digital infrastructure, enhancing control and customer stickiness.

From an investment perspective, ITMAX currently trades at an Acquirer’s Multiple of about 34, which is well above typical sector multiples of 10–20. For example, Motorola Solutions and Hexagon’s smart infrastructure divisions typically range between 12 to 20. ITMAX’s premium valuation reflects high market expectations for its growth trajectory and embedded asset base.

Positioning for Recovery: Muhibbah on the Edge of a Turnaround

Muhibbah Engineering (M) Bhd is a diversified engineering and infrastructure group.

Between 2019 and 2024, it transitioned into a more focused, vertically integrated solutions provider for the oil & gas and infrastructure sectors. Its core divisions—construction, cranes, concessions, automation, and shipbuilding—remained, but with sharper strategic focus.

Automation, initially an acquisition, became a formal growth pillar, while the crane segment, via Favelle Favco, expanded globally. The infrastructure arm deepened its specialization in platforms, petrochemical works, and heavy steel fabrication, supported by in-house yards. Concessions, especially Cambodia airports, remained relevant but faced regulatory headwinds.

Despite these shifts, performance was weak. Revenue grew at just 3.4% CAGR over six years, with a major loss in 2020 and lackluster ROEs through 2023. The pandemic severely disrupted operations and concession earnings, while recovery was hampered by low margins, underutilized assets, and inflation. ROE only turned meaningfully positive in 2024, reaching 7.7%, as earnings rebounded across concessions, marine, cranes, and automation.

As such you should not be surprised to see it being mapped onto the border of the Turnaround and Gem quadrants in the Fundamental Mapper.

Sustained improvement will depend on global macro stability, continued recovery in travel and infrastructure, and Muhibbah’s ability to execute well and navigate concession-related risks.

SunCon: Sustainable Growth, But Will ROE Catch Up?

Sunway Construction Group Berhad (SunCon) is Malaysia’s leading integrated construction and engineering group. Its vertically integrated model ensures cost efficiency and quality, particularly in complex projects.

A key strength is its early shift toward sustainability. Through its Sustainable Energy Services division, SunCon delivers solar, district cooling, and energy-efficient infrastructure. SunCon also embeds digitalisation and circular economy practices to cut waste and enhance ESG performance.

It has evolved from a traditional contractor into a future-ready partner focused on sustainable, smart, and energy-efficient infrastructure.

While this changes has driven revenue to double from 2019 to 2024, ROE only grew by 8%.

Part of this was due to margin compression. For example, gross profit margin decreased from 21% in 2019 to 14% in 2024. Another reason was the increase in the capital to fund the growth. Total equity increased by 30% over the same period.

Given this picture, you should not be surprised to find Suncon been mapped onto the border of the Gem and Quicksand quadrants in the Fundamental Mapper.

Can the declining ROE be turnaround? The potential for SunCon’s ROE to improve depends on its shifts toward higher-margin, value-added projects like green buildings and energy infrastructure.

Recurring income from solar and district cooling assets will also enhance earnings without significantly increasing equity. At the same time, digital tools and cost-efficiency measures could drive margin recovery. With capital intensity stabilizing, these developments could led to a gradual but sustainable ROE uplift. Only time will tell.

Frontken: Squeaky Clean Profits, but ROE Needs a Polish

Frontken Corporation Berhad is a leading service provider specializing in advanced precision cleaning, surface treatment, and maintenance of high-value components for the semiconductor and oil & gas industries.

Over the past six years, it has been riding a pretty sweet growth wave - revenue grew at a solid 11% CAGR, thanks to booming demand in semiconductors, smart capacity expansions, and a nice little comeback from its oil & gas business.

Profits shot up even faster, with PAT growing at 15% CAGR. That is the magic of doing more high-value work, keeping costs in check, and squeezing more out of each dollar, particularly in its powerhouse hubs of Taiwan and Singapore.

But here is the twist. Despite raking in more profits, ROE barely budged, moving from 20.0% in 2019 to just 20.7% in 2024. Why?

Well, Frontken has been playing it safe - retaining lots of earnings, issuing new shares from warrant conversions in 2024, and keeping its balance sheet squeaky clean. All great for stability, but not exactly ROE fuel.

Still, on the Fundamental Mapper, Frontken shines bright, sitting proudly to the right with its strong business performance. But… maybe just a little too bright for the market’s liking. With its stock price possibly outpacing its fundamentals, it is landed in the Gem quadrant—sparkling with quality, but perhaps already fully admired.

Greatec: From Rocket to Rollercoaster

Greatech Technology Berhad has spent the past six years scaling up impressively - transforming into a global automation powerhouse serving industries like solar, semiconductors, EVs, and life sciences. Revenue grew 3.5 times, and profit after tax tripled.

This was not luck. It was the result of bold moves: entering new markets, diversifying its customer base, and investing heavily in capacity, talent, and acquisitions.

But while the business grew bigger, shareholder returns told a different story. Return on equity was cut in half - not because of new shares, but because retained profits swelled the equity base while profit growth lagged behind revenue. Heavy upfront investment in new factories, people, and subsidiaries also weighed down margins in the short term.

Now, Greatech finds itself at an inflection point - straddling the edge between the Quicksand and Gem quadrants in the Fundamental Mapper. To overcome this predicament – growing revenue with declining ROE - the strategy must shift from expansion to execution. That means making better use of the infrastructure already in place, focusing on higher-margin, repeatable projects, and tightening cost control.

The challenge ahead is clear - turn scale into efficiency, and growth into stronger returns. If Greatech can do that, it won’t just be a leader in automation – it will be a high-performing business delivering real value to shareholders.

Burned Out? Why Elsoft’s Test Equipment Business Needs a Reboot

Once upon a time, Elsoft Research Berhad was riding high, churning out test and burn-in systems like nobody's business. These clever contraptions found eager customers in the booming world of smartphones and shiny gadgets. Life was good.

But then came 2019. Demand for LED flash testing started drying up as smartphone makers got a little too comfortable with “good enough,” and product designs moved on. And just when Elsoft was wondering what else could go wrong, along came COVID-19, slamming the brakes on capex and shipping schedules. Revenue took a nosedive.

In 2021 and 2022, things perked up a bit - thanks to delayed orders finally getting delivered and customers emerging from lockdown hibernation. But this was a short lived rebound. The core smart device segment never came back, and Elsoft’s newer bets - like automotive and medical test equipment - were still warming up on the sidelines.

Today, Elsoft sits in what we’d call the “Quicksand quadrant” in the Fundamental Mapper It is not sinking dramatically, but it is definitely stuck. The company is making all the right noises - more R&D, new markets, a pivot to EVs and medical devices - but real growth is still a work in progress. Until those bets pay off, Elsoft’s story is less “comeback kid” and more “patient in rehab.”

KESM: Strategic Shift and Signs of Recovery

KESM Industries Berhad is principally engaged in burn-in and testing services for the semiconductor industry. It is recognized as the world's largest independent burn-in and test service provider, primarily serving global semiconductor manufacturers.

However, KESM’s revenue declined 20 % from 2019 to 2024. According to the company, the revenue decline was not due to market loss or obsolescence, but rather a strategic pivot into higher-value segments (EV and AI), hindered by macroeconomic disruptions and long product development cycles.

But the turnaround signs in 2024 suggest that the business may be at an inflection point.

• Revenue rose 6 % in 2024 compared to that in 2023. This marks the first year-on-year growth since 2021.

• After a net loss in 2023, KESM recorded a modest net profit of RM0.2 million in 2024.

• KESM noted improvements in the automotive semiconductor demand, especially for EV applications

• The company is seeing rising orders for advanced power management chips used in AI systems, a new but rapidly growing vertical.


In short, 2024 marked a bottoming out and a pivot toward recovery. While the profit was still minimal, the operational and strategic indicators point to early-stage momentum that could accelerate if EV and AI testing volumes continue to grow.

Unisem: Positioned for a Rebound?

Over the past six years, Unisem (M) Berhad has evolved from a cost-focused OSAT player into a technology-driven, sustainability-aligned enterprise.

This transformation involved embedding ESG principles and digitalisation into its operations, expanding its role to a collaborative innovation partner, and investing in modern, environmentally sustainable facilities.

Despite this strategic shift, there was no sustained uptrend in profits from continuing operations. While profit after tax in 2022 was approximately three times higher than in 2019, by 2024 it had declined to a level below that of 2019.

Operationally, there was little improvement in profit margins over the six-year period, although the Selling, General and Administrative margin remained stable. As a result, ROE declined at 12 % per year compounded over the period.

According to the company, this performance stems primarily from cyclical demand weakness, underutilised capacity, and cost escalations. These challenges have masked the operational improvements and technology investments the company has made.

However, its capacity investments, customer alignment, and cost control suggest it is well-positioned to rebound once demand normalizes.

To track Unisem’s recovery, investors should watch for rising semiconductor demand and improved plant utilisation. Margin and ROE improvement would signal better cost absorption and capital efficiency. New customer wins and progress on technology and ESG goals would further support a sustainable rebound.

Globetronics Turnaround Hinges on Product Renewal

Globetronics’ revenue has halved over the past six years, with PAT falling from RM46 million in 2019 to RM11 million in 2024.

While gross margins held up, the shrinking topline meant fixed costs weighed more heavily on profits. The company attributes the decline to lower customer volume loadings, its exit from the quartz timing business, and COVID-related disruptions.

But the deeper issue is this: new products have not scaled fast enough to replace legacy lines. In a tech-driven industry, that is a serious concern. Globetronics’ own disclosures cite softening demand and reduced volume from key customers, but offer little mention of successful new product rollouts or major customer wins.

This absence is telling. Over several years, the company has explained revenue weakness through external factors, yet there has been no concrete sign of innovation-led growth. In a sector where new product milestones are typically highlighted, this silence suggests execution gaps in product development and commercialization.

This is the heart of Globetronics’ challenge. In tech, if new doesn’t grow, old revenue goes. A sustained turnaround will depend on the company regaining its ability to bring new, scalable products to market.

Its position in the Turnaround quadrant in the Fundamental Mapper reflects this fundamental issue.