Sagtec secures $5 million in AI and robotics contracts

Published 06/06/2025, 13:42
Sagtec secures $5 million in AI and robotics contracts

KUALA LUMPUR - Sagtec Global Limited (NASDAQ: SAGT), a company specializing in AI and automation platforms with a market capitalization of $32.5 million, has recently announced the signing of two commercial contracts in Southeast Asia, totaling $5 million. According to InvestingPro analysis, the company appears undervalued at its current price of $2.35. The contracts, signed shortly after the launch of Sagtec’s AI-powered robotics platform, are part of a broader strategy to establish a $50 million revenue pipeline over the next year.

The first contract, worth $2 million, involves the deployment of over 100 autonomous robotic units to a leading Malaysian multi-brand restaurant group. This deployment, which is part of a nationwide rollout, is expected to generate over $20 million in revenue under a Robotics-as-a-Service (RaaS) model.

Additionally, Sagtec secured a $3 million contract for a Customer Relationship Management (CRM) project with a prominent food and beverage operator. The CRM solution includes loyalty management, points tracking, inventory control, and workforce management modules. This contract is projected to contribute over $30 million to the company’s Software-as-a-Service (SaaS) revenue pipeline through regional expansion. The company has demonstrated strong growth potential, with revenue increasing by 77.59% in the last twelve months to $11.63 million.

Both contracts leverage Sagtec’s full-stack AI platform, which integrates voice-activated robotics, point-of-sale systems, and real-time analytics. These deployments support Sagtec’s monetization strategy, focusing on RaaS and SaaS models to generate scalable, high-margin recurring revenue.

With the global service robotics market expected to exceed $90 billion, Sagtec aims to become a leading platform-native AI solution provider. The company is expanding its commercial engagements across Southeast Asia, Hong Kong, and the Gulf Cooperation Council (GCC) markets. InvestingPro data reveals the company maintains a strong financial health score and operates with a moderate debt level, with a debt-to-equity ratio of just 0.21.

Kevin Ng, Chairman, Executive Director, and CEO of Sagtec, remarked on the significance of these contracts, stating that they represent more than early traction and mark the beginning of an exponential monetization curve. The company’s approach is designed for rapid scaling with enterprise adoption, embedding AI into daily operations to generate repeatable revenue.

Sagtec primarily serves the Food & Beverage sector but also offers software development, data management, and social media management services to enhance operational efficiency across various industries. The company operates power-bank charging stations in Malaysia through its subsidiary, CL Technology (International) Sdn Bhd.

The information reported is based on a press release statement from Sagtec Global Limited. Despite recent stock price volatility, with shares down over 20% in the past week, analysts expect 55% revenue growth in the coming year. For more detailed financial analysis and additional ProTips, visit InvestingPro.

In other recent news, Sagtec Global Limited has announced plans to acquire Smart Bridge Technology Limited for $17.6 million, aiming to integrate Smart Bridge’s AI engine into its ecosystem. This acquisition is expected to enhance Sagtec’s offerings, particularly in AI-driven business intelligence and analytics. Meanwhile, Sagtec has secured a $30 million Master Dealership Agreement with Dubai-based SMD Tech FZCO to distribute its Speed+ Cloud-Based Smart Ordering System in the UAE, expected to generate significant revenue over five years.

Additionally, Sagtec has begun rolling out its Speed+ software in Indonesia, marking a strategic expansion in Southeast Asia. This follows an exclusive Master Dealership Agreement with PT Kiwari Asih Solusi, which is anticipated to generate at least $30 million in revenue. In Malaysia, Sagtec has launched an AI-powered chatbot service for the food and beverage sector, aiming to streamline operations and customer interactions.

These developments reflect Sagtec’s ongoing efforts to expand its market presence and adapt to the growing demand for digital solutions. Kevin Ng, Sagtec’s CEO, has emphasized the strategic timing of these moves, highlighting the potential for growth in various markets. The company’s recent activities underscore its commitment to leveraging digital transformation opportunities across Asia and the Middle East.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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