KUALA LUMPUR: Insights Analytics Bhd's (IAB) entry into the power utility segment opens up a new growth avenue and strengthens its long-term earnings visibility, CIMB Securities Sdn Bhd said.

The research house said IAB's latest RM12.2 million subcontract for works at a substation in Sarawak marks its "first foray into the power utility space", signalling a step beyond its traditional water-focused operations.

"We view this positively as it opens a new growth vertical in power utilities," it said in a note, adding that the segment offers a structurally larger addressable market due to "greater asset complexity and scale".

CIMB Securities said the contract also enhances IAB's earnings visibility, lifting its outstanding order book by 20.2 per cent to RM72.7 million.

Beyond near-term earnings contribution, it said the group is well-positioned to tap into Sarawak's power infrastructure ecosystem, particularly in substation digitalisation, smart monitoring and systems integration.

The research house said power utility digitalisation could represent a larger and more scalable long-term market compared with water, given broader system coverage and the need for real-time monitoring across electricity networks.

"We believe this signals IAB's evolution into a broader smart utility infrastructure player," it said.

CIMB Securities maintained its "Buy" call with a target price of RM2.10, citing IAB's growing order book and rising exposure to higher-value digitalisation opportunities.