Zetrix Posts Strong Revenue Growth Despite Higher Operating Costs

Zetrix reported solid revenue expansion and healthy margins in 3QFY25, supporting a maintained BUY call with a RM1.25 target price.

Zetrix AI Berhad recorded steady earnings growth in 3QFY25, prompting analysts to maintain a BUY recommendation with an unchanged target price of RM1.25. The group’s e-government services continued to provide a reliable revenue base, while the Zetrix blockchain platform remained its primary growth engine. Revenue rose 37.7% year-on-year to RM341.6 million, driven by Web3 service fees and sales of Zetrix tokens.

Zetrix – Strong Revenue

Normalised profit stood at RM200.6 million after adjusting for exceptional items, reflecting a 14.8% year-on-year increase. Despite this, operating expenses surged 107.3% to RM95.5 million, reducing the profit margin to 58.7% from 70.4% a year earlier. Analysts noted that margins remained strong due to tax incentives linked to Zetrix’s service offerings.

The group’s 9MFY25 normalised earnings reached RM610.5 million, or about 77% of full-year estimates, in line with expectations. The recent launch of the China-ASEAN AI Lab highlighted Zetrix’s strategic focus on integrating blockchain, AI and robotics, with potential spin-off opportunities seen as future value drivers.

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