Agmo: Can This Malaysian App Builder Become an AI Giant?

Agmo is a Malaysian digital solutions provider, with its main revenue derived from mobile and web application development. Other revenue streams include subscriptions, technical support, and platform-based services (such as Vote2U and Agmo Loyalty).

The company reported healthy revenue and profit growth from 2020 to 2025. However, its ROE declined from 30% in 2020 to 18% in 2025, primarily due to an enlarged equity base following its 2022 IPO.

Post-IPO, revenue growth has moderated while gross margins have remained relatively stable. However, the SGA margin has risen from 8.5% in 2023 to 12.5% in 2025, suggesting that ROE could come under further pressure unless Agmo reignites top-line growth and improves cost discipline.

Agmo is building internal AI infrastructure, positioning itself as a national leader through MerdekaLLM. It is also scaling into enterprise AI services via strategic partnerships and a new JV. This multi-faceted approach—from infrastructure to applications—reflects a deliberate push to transition from an app developer to an AI solutions provider.

Agmo’s pivot into AI infrastructure and sovereign LLMs is strategically compelling and could open up new high-value enterprise and platform revenue streams. However, given the rising operating cost base and the early-stage monetisation of its AI initiatives, it remains uncertain whether this will meaningfully reverse the slowdown in revenue growth or drive margin expansion in the near term.

The company currently trades at an Acquirer’s Multiple (EV/EBIT) of about 12. This sits comfortably within the Malaysian ICT software and services range of 9 to 15, but remains well below the global software sector, where multiples typically exceed 20. But you should consider whether the Malaysian software market offers comparable growth prospects to justify a rerating to global valuations.

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