XA Update Report | PT PT ITSEC Asia Tbk. (CYBR) – Pipeline Compounds, Delivery Skews 2H — Maintain BUY

 

 

By NHKSI Research Team

4-September-2026

 

 

We maintain our BUY rating on CYBR with a target price of IDR 1,050/share (post 1:2 stock split), implying +94.4% upside based on our DCF valuation. CYBR’s 2Q26 results confirmed a sharp operating leverage inflection, with operating profit surging 1,171% YoY even as gross margin softened on project mix. While FX gains and a non-cash tax benefit flatter parts of the headline numbers, underlying execution improved meaningfully. With project delivery skewed toward 2H26 and a broadening SOE and defense-sector pipeline, we see a stronger second half ahead

 

 

🔹2Q26 & 1H26 Financial Performanc

 

 

• Revenue growth resumes on stronger project execution. CYBR’s 2Q26 revenue grew 21% YoY (+34% QoQ) to IDR 115.0 bn, a clean rebound from the 1Q26 cyclical trough, driven by stronger project execution and the timing of key project deliveries during the quarter.

 

 

• Operating leverage surges as gross margin moderates. Gross profit rose 12% YoY to IDR 52.1 bn, though GPM eased to 45.3% (vs. 48.9% in 2Q25) on project mix. Despite the softer gross margin, OPM expanded sharply to 20.0% (vs. 1.9% in 2Q25), driving operating profit up 1,171% YoY to IDR 23.0 bn and PBT up 1,407% YoY to IDR 22.7 bn (PBT margin: 19.7% vs. 1.6%).

 

 

• Underlying improvement extends beyond FX. 2Q26 operating profit included approximately IDR 10.3 bn of net other income, mainly FX gains from rupiah depreciation. Excluding this item, gross profit less G&A expenses still improved 41.6% YoY, indicating that better cost absorption and project execution, not FX alone, drove the margin inflection.

 

 

• 1H26 headline earnings mask a stronger underlying trajectory. 1H26 revenue declined 13% YoY to IDR 201.2 bn, and net profit came in at IDR 34.3 bn (vs. IDR 36.7 bn in 1H25), a decline driven almost entirely by the soft 1Q26 base. Reported 1H26 net profit also included a IDR 28.9 bn non-cash income tax benefit, limiting comparability. We forecast that project delivery will be more heavily weighted toward 2H26, setting up for stronger revenue conversion ahead.

 

 

 

🔹Regulation and SOE Ecosystem Broadens the Pipeline

 

 

• New access into SOE and government buyers. In July 2026, CYBR announced an MoU with PT Industri Telekomunikasi Indonesia (Persero) covering cybersecurity solutions, SOC capability development, and Academy talent development, alongside business development access into SOE, provincial, and regional government buyers.

 

 

• Deepening exposure to the defense ecosystem. CYBR also signed an MoU with PT Len Industri (Persero), the holding company of DEFEND ID, to provide cybersecurity capabilities supporting its C4ISR/C5ISR mandate. We view this as strategically important given cybersecurity’s increasingly critical role in defense systems, with potential to broaden CYBR’s pipeline across government-linked institutions and open follow-on project opportunities.

 

 

• Regulatory tailwind on the horizon. The Cyber Security and Resilience Bill (RUU KKS), currently under deliberation, is expected to broaden cybersecurity obligations across critical infrastructure and its supporting ecosystem, potentially shifting cybersecurity spending from discretionary to increasingly mandatory expenditure

 

 

🔹 Revising FY26 Estimates on a More Back-Loaded Contract Timeline

 

 

• Adjusting FY26 estimates on contract phasing, revenue skewed toward 2H26. We adjust our
FY2026 revenue forecast to IDR 717 bn implying +35.9% YoY growth, and net profit to IDR 161 bn, implying +148.6% YoY growth. The adjustment reflects our assumption that new contracts contribute more heavily in 2H26 and into 2027 onward, rather than being fully absorbed within FY2026.

 

 

 

🔹 Maintain BUY Recommendation with TP at IDR 1,050/Share

 

 

• We maintain our BUY rating on CYBR with an adjusted target price of IDR 1,050/share,
implying +94.4% upside based on our DCF valuation. This adjustment solely reflects the 1:2
stock split executed in May 2026. In our view, 2Q26 marked a clear improvement in operating
momentum. With expanding SOE and government access, a broadening defense-sector footprint, and a potentially supportive regulatory backdrop from RUU KKS, we believe 2H26 execution will be the key determinant of whether CYBR can sustain its margin inflection and convert its growing pipeline into recurring growth.

 

 

• Key Risks: (1) Execution risk on large-scale contracts, (2) Intensifying competition within the Indonesian and regional cybersecurity sector, and (3) Sensitivity to cyclical corporate IT security budgets during economic slowdowns.

 

 

 

Download full report HERE.

 

 

 

 

NH Korindo Sekuritas Indonesia berizin dan diawasi Otoritas Jasa Keuangan (OJK). Untuk informasi lebih lanjut, anda dapat menghubuni CS kami via email CSO@nhsec.co.id