Zetrix AI Profit Jumps 49% — Nasdaq Deal Signals Growth

Zetrix AI Posts 49% Profit Jump — Here’s What Drove It

Zetrix AI Bhd (ZETRIX) delivered stronger-than-expected earnings in the three months to March 31, 2026, with net profit climbing 49% to RM271.3 million from RM181.6 million a year ago. The jump came on the back of two main revenue drivers: higher contributions from web3 application service fees on its blockchain platform and fresh income from Zetrix layer-1 node sales.

Revenue for 1QFY2026 hit a record RM386.3 million, up 28.8% year-on-year from RM300 million previously. But investors should note the real story is in the margin expansion — profit growth (49%) is outpacing revenue growth (28.8%), suggesting operational leverage is kicking in on the blockchain side.

The formerly-MyEG Services Bhd company declared no dividend for the quarter under review, a signal that management is reinvesting all cash back into growth rather than returning capital to shareholders. This is typical for high-growth tech plays pursuing market expansion.

HeiTech Padu Impairment Clouds the Picture

Not all the news is rosy. Zetrix AI booked a RM9.1 million impairment loss in the quarter, stemming from the mark-to-market revaluation of its HeiTech Padu Bhd (HTPADU) investment. This non-cash charge reduced what could have been an even stronger profit number.

Here’s the backstory: Zetrix initially bought a 14.4% stake (14.57 million shares) in HeiTech Padu for RM31.25 million in March 2024. The deal involved cash and share-based transactions, and came when Datuk Seri Farhash Wafa Salvador was a major shareholder in HeiTech. Farhash later exited his position, but his lawyer Sandraruben Neelamagham remains on HeiTech’s board as executive director.

Zetrix ramped up its stake to 24.935% on August 11, 2025, then trimmed it back down to 16.9% (27.5 million shares) as of November 12, 2025. Based on HeiTech’s Monday closing price of RM1.38 per share, that stake is now valued at roughly RM38 million — showing the mark-to-market loss reflects weakness in the HeiTech share price since the initial investment.

What Does the Nasdaq Deal Mean for Zetrix AI Shareholders?

The big headline for growth-focused investors is Zetrix AI’s exploration of a potential Nasdaq listing. The company signed a non-binding memorandum of understanding (MOU) with Forefront Tech Holdings Acquisition Corp (FTHAC), a Nasdaq-listed blank-cheque company incorporated in the Cayman Islands.

FTHAC began trading on Nasdaq Global Market on April 30, 2026, following its initial public offering just one day later on May 1, 2026. The blank-cheque structure is a shortcut to Nasdaq listing — rather than going through the lengthy traditional IPO process, Zetrix could merge with FTHAC to achieve a US listing in months rather than years.

Management stated the goal clearly: “A successful listing will enable the company to tap a larger pool of global capital to further propel Zetrix’s push to become one of the leading AI companies.” This signals serious ambition to scale beyond Malaysia’s capital markets.

However, retail investors should note the MOU is non-binding and creates no legal obligation for either party to proceed unless definitive agreements are signed. The exclusivity period is 180 days with an optional 30-day extension. Full details remain confidential under a separate non-disclosure agreement, so expect limited transparency until (or if) a deal is formal.

Zetrix AI’s Lab Carve-Out and Global Ambitions

Beyond the FTHAC deal, Zetrix is exploring a carve-out of projects from its lab into a new subsidiary, with plans for potential listing on international exchanges like Nasdaq or other global platforms. This suggests management sees multiple AI initiatives with IPO potential and wants to unlock value by separating them.

The strategy mirrors how larger tech conglomerates spin out subsidiaries to attract specialist investors and tap different capital markets. For Zetrix shareholders, it could mean upside if any lab spin-offs succeed, but also dilution risk if new equity is issued for the carve-outs.

Stock Performance and Valuation

Zetrix AI shares rose one sen (1.3%) to 80.5 sen on the day of the announcement, May 25, 2026. The stock now commands a market capitalisation of RM6.38 billion, reflecting strong investor appetite for web3 and blockchain plays on Bursa Malaysia.

To put this in context, the stock has climbed significantly from its MyEG days, pricing in substantial growth expectations around the blockchain and AI narrative. The market is clearly betting on the Zetrix pivot succeeding and the layer-1 node business scaling.

What Should Retail Investors Monitor?

For Bursa Malaysia retail investors, Zetrix AI (ZETRIX) is worth monitoring on several fronts. First, watch quarterly results for trends in web3 service fees and node sales — these are the core growth engines. Second, track the FTHAC MOU progress; any announcement of definitive agreements would be material for the share price.

Third, keep an eye on the HeiTech Padu stake. If Zetrix fully divests or further trims its position, that could unlock cash for the blockchain business. Fourth, monitor announcements about the lab carve-out; any spin-off IPO filing would signal serious corporate restructuring.

Investors may also want to compare Zetrix’s growth trajectory with other Bursa tech plays or regional blockchain-focused stocks. The 49% profit jump is impressive, but sustainability depends on whether web3 adoption actually accelerates or remains niche.

The Broader Web3 and AI Story

Zetrix AI is one of few Malaysian-listed companies with direct exposure to blockchain infrastructure and web3 applications. While the sector remains volatile and speculative, the company’s transition from a services play (MyEG) to a blockchain-native business is a genuine strategic pivot.

The potential Nasdaq listing signals confidence that global investors see value in a Malaysian-headquartered blockchain platform. It also reflects the reality that larger capital pools for AI and web3 exist in the US than in Malaysia, making international listing a logical move for growth ambitions.

For retail investors interested in AI stock analysis for Malaysian equities, Zetrix offers a way to play blockchain infrastructure rather than traditional software or semiconductor exposure. However, this is a high-risk, high-growth bet — not a defensive holding.

Final Thoughts: Is Zetrix AI Worth Watching?

Zetrix AI’s 49% profit jump and record revenue clearly demonstrate traction in its blockchain and web3 strategy. The company is no longer a struggling services business — it has evolved into a genuine blockchain infrastructure player with operational momentum.

The FTHAC MOU and planned lab carve-out show management is thinking big about global expansion and value creation. However, investors must recognise the risks: blockchain is cyclical, regulatory uncertainty remains high, and the FTHAC deal is far from certain.

For Bursa Malaysia retail investors with a higher risk tolerance and interest in emerging tech, Zetrix AI is definitely worth monitoring. Track earnings, watch for FTHAC updates, and stay alert to any lab spin-off announcements. But do your own research and size positions according to your risk appetite — this is a growth play, not a blue-chip holding.

This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own due diligence and consult a licensed financial adviser before making any investment decisions on Bursa Malaysia.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.

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