CTOS hits record low after cyber breach and wave of downgrades
Shares tumbled after CTOS disclosed an unauthorised access incident and Bank Negara suspended CCRIS-linked services. Major brokers cut ratings and earnings forecasts.
FMT reports CTOS fell to an all-time low after a Sept 23 cybersecurity disclosure and a CCRIS suspension. CTOS expects FY2026 net profit down RM12m and revenue down RM16m.
CTOS Digital Bhd sank to a fresh low after a cybersecurity disclosure and a string of broker downgrades. FMT reports the stock slid as much as 17% (8.5 sen) to 41.5 sen before closing at 42 sen, valuing the group at RM929 million. About 21.4 million shares changed hands.
What happened
CTOS first disclosed the cybersecurity incident on Sept 23, saying unauthorised access occurred in an environment supporting its consumer business. Bank Negara Malaysia then suspended the Central Credit Reference Information System (CCRIS), which collects credit and loan data — a move that disrupted CTOS services including CTOS Score. CTOS told investors the breach is expected to reduce FY2026 net profit by RM12 million and revenue by RM16 million, assuming some services stay unavailable until the third week of October.
What the brokers say
Hong Leong Investment Bank downgraded CTOS from “buy” to “hold”, cut its target price to 50 sen and trimmed FY2026–28 earnings forecasts by 18%, 15% and 14%, warning that “restoring the system may be quicker than restoring customer confidence.” Kenanga downgraded to “market perform”, cut its target price to 48 sen, and said earnings could fall further if services stay offline. CIMB warned of longer-term customer and cost implications.
The takeover: CTOS’ shares and earnings visibility have been hit hard by the breach and regulatory suspension. The takeaway: keep watch on service restoration and broker updates.
Summary written by Oh Cannot from the original report by FMT Business. Not financial advice.
