Cloudpoint Technology (Cloudpoint) has proposed to acquire 100% stake in CX One Sdn Bhd for RM16.8 million. The move is seen as very strategic as it allows Cloudpoint to penetrate the customer experience (CX) and unified communications solutions market, an area where they have previously had little exposure.
HIGHLIGHT
Acquisition value: RM16.8 million
Profit guarantee: RM7.5 million (cumulative for FY26-28F)
Price target (TP): RM0.87
CIMB SECURITIES Recommendation: ‘Buy’
Sentiment: Positive but cautious on sector competition
ComScore Observer
IMPORTANT DATES
6 May 2026: Acquisition announcement to Bursa Malaysia
3Q 2026: Acquisition target full completion
FY2026 – FY2028: Profit guarantee period by CX One vendor
The acquisition is considered complementary to Cloudpoint’s existing businesses such as cybersecurity and cloud services. By acquiring CX One, Cloudpoint now has a significant opportunity to cross-sell to its existing customers in the financial, telecommunications and aviation sectors.
Financially, the transaction comes with a net profit guarantee of RM7.5 million over a three-year period. If this target is achieved, it is expected to boost Cloudpoint’s earnings per share (EPS) by between 3.8% and 7.1% for the financial years 2026 to 2028. This means that investors can expect more stable profit growth in the medium term.
While CIMB SECURITIES maintains its ‘Buy’ recommendation, the target price (TP) has been adjusted to RM0.87 from RM1.05 previously. This adjustment is made to reflect the more challenging operating environment and intense competition among IT solution providers in Malaysia.
Key Focus
Investors will need to monitor whether Cloudpoint is able to smoothly integrate CX One’s operations after the acquisition is completed in the third quarter of 2026. The company’s ability to retain CX One’s staff through a management services agreement is also critical to ensuring business continuity. In addition, any new contracts won as a result of this combination of expertise will be a major catalyst for the share price.
Opportunities
Recurring Revenue: CX One’s profile of having revenue from maintenance and subscriptions will strengthen the company’s cash flow.
Market Opportunity: Add expertise in AI and automation through CX One’s chatbot solution.
Risks
Intense Competition: Malaysia’s IT sector is now more competitive which may put pressure on the company’s profit margins.
Failure to Guarantee Profit: If CX One fails to achieve the RM7.5 million target, it could affect the profit forecast.
Overall, sentiment towards Cloudpoint remains positive as this acquisition will not only add to profits but also complement their IT services portfolio. The key ‘catalysts’ to watch are the formal completion of this acquisition in 3Q26 and CX One’s financial performance under new management. Investors are advised to continue monitoring the momentum of IT contracts in the financial services sector (FSI) which is a key strength of Cloudpoint.
