Good Afternoon All,
Following SRKK AI Berhad’s (SRKK) 2QFY26 results briefing, here is our quick take for investors:
📈 Investment Highlights
📌 Solid sequential 2QFY26 profit growth. While 2QFY26 revenue dipped slightly by 3.8% QoQ to RM30.3m due to lower IT hardware sales, GP grew 7.9% QoQ to RM7.8m (with GP margin expanding to 25.9%). Adjusted PAT reached RM2.0m (translating to a 6.7% adjusted PAT margin) after normalizing RM0.1m in one-off IPO listing expenses. For 1HFY26, revenue totalled RM61.7m with an adjusted PAT of RM4.0m (6.6% margin).
📌 IP productization via OnePrism. SRKK is transitioning from system integration to an IP-owning tech provider under its "OnePrism" brand, which houses over 40 pre-built AI use cases. By developing and licensing its own proprietary software rather than relying solely on third-party platforms, SRKK aims to unlock scalable, high-margin recurring SaaS revenue streams moving forward.
📌 Expansion into Indonesia. SRKK is expanding into Indonesia’s rapidly growing tech ecosystem following the incorporation of PT SRKK Consulting Indonesia on 14 July 2026, establishing an advisory and consulting hub in Jakarta.
📌 Building an in-house Security Operations Centre (SOC). SRKK is establishing its own SOC at Port Tech Tower in Klang, transitioning away from external third-party SOC dependencies. The facility will deploy 14 dedicated managed service personnel to offer services like threat intelligence, risk management and compliance monitoring.
📌 AI Labs & AI Academy. SRKK is expanding its enterprise reach by operating AI Labs for solution ideation, prototyping, and testing, effectively shortening client deployment times. Complementing this, its AI Academy delivers accredited training courses to business leaders and technical teams, serving as a direct upstream feeder for IT advisory and consulting projects.
📌 RM30.5m order book and recurring revenue model. As of 31 July 2026, SRKK’s unbilled order book stood at RM30.5m. Revenue visibility is reinforced by its fast-growing recurring income segment (cloud and IT managed services), which contributed 59.1% of total 2QFY26 revenue (up from 52.8% in FY25).
📌 Dividend declared. The Board also declared a total dividend of 1.00 sen per share (0.30 sen interim + 0.70 sen special). Ex-date: 22Oct26, entitlement date: 23Oct26, payment date: 19Nov26
💡 M+ Global View
📌 While 1HFY26 PAT was temporarily weighed down by non-recurring listing costs of RM0.79m, underlying core profitability remains healthy with an adjusted PAT of RM4.0m and adjusted PAT margin of 6.6%.
📌 Key catalysts include: (i) higher-margin IP productization via OnePrism, (ii) regional market expansion into Indonesia, (iii) operationalization of an in-house SOC in Klang to capture high-value managed cybersecurity services, and (iv) monetization of its AI Labs & AI Academy.
M+ Global Research Team
26 Aug 2026
August 26, 2026 3.2K 15
