Sagtec Global Limited Announces US$4.0 Million Software Development Agreement for AI-Driven Mobility Platform

Rhea-AI Summary

Sagtec Global Limited (NASDAQ:SAGT) announced a US$4.0 million software development agreement dated January 5, 2026 to build a Smart AI E-Hailing, Car Rental and Subscription System for Grandpride Luxury Travel. Initial development is expected to start in Q1 2026 with a phased rollout targeted within approximately 3–8 months. Contract components include US$1.6M for licensing and custom development, US$1.2M for five years of service and maintenance, and US$1.2M for five years of data hosting and analytics. The Platform will embed AI features

Positive

• Total contract value US$4.0M
• Licensing & development fee US$1.6M
• Recurring services & hosting US$2.4M over five years
• Targeted phased rollout in ~3–8 months from Q1 2026
• AI-enabled platform with demand forecasting and dynamic pricing
• Uses Skilliks_my to reduce upfront AI infrastructure capex

Negative

• Revenue timing concentration: US$2.4M recognized over five years
• Aggressive timeline (3–8 months) may raise delivery risk compared with industry norms
• Milestone-based payments may create uneven near-term cash receipts

News Market Reaction

+8.70%

3 alerts

+8.70% News Effect

+2.8% Peak Tracked

+$2M Valuation Impact

$23M Market Cap

0.1x Rel. Volume

On the day this news was published, SAGT gained 8.70%, reflecting a notable positive market reaction. Argus tracked a peak move of +2.8% during that session. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $2M to the company's valuation, bringing the market cap to $23M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Total contract value: US$4.0M Licensing & development: US$1.6M Service & maintenance: US$1.2M +5 more

8 metrics

Total contract value US$4.0M Aggregate software development, service, hosting Agreement with Grandpride

Licensing & development US$1.6M System architecture, development, testing and delivery fees

Service & maintenance US$1.2M Five-year support, maintenance, upgrades after final acceptance

Hosting & analytics US$1.2M Five-year cloud infrastructure, data management and AI analytics

Initial development start Q1 2026 Expected commencement of Smart AI E-Hailing platform build

Rollout timeline 3–8 months Phased rollout target after initial development begins

Service duration 5 years Duration for maintenance and hosting services post-acceptance

Regions for Skilliks partner 4 countries Kinetic Seas exclusive AI partner across MY, ID, SG, PH

Market Reality Check

Price: $2.00 Vol: Volume 25,870 is 40% abov...

normal vol

$2.00 Last Close

Volume Volume 25,870 is 40% above the 20-day average of 18,523, indicating elevated interest ahead of this AI contract news. normal

Technical Shares at $1.84 are trading below the 200-day MA of $2.38 and about 70.51% under the 52-week high, but 22.67% above the 52-week low.

Peers on Argus

SAGT is up 1.66% while peers show mixed moves: IPM +0.55%, MTC +0.71%, but MNDO,...

SAGT is up 1.66% while peers show mixed moves: IPM +0.55%, MTC +0.71%, but MNDO, BLBX and CREX are negative. With no peers in momentum scanners and no same-day peer news, the move appears stock-specific to this AI contract.

Historical Context

5 past events · Latest: Dec 15 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 15	AI strategy update	Positive	-4.0%	Year-end letter with strong 9M 2025 results and AI revenue targets.
Nov 25	Earnings update	Positive	+2.2%	Nine-month 2025 results with ~97% revenue and 226% net profit growth.
Nov 04	AI partnership	Positive	+20.9%	Expanded AI co-development and revenue-sharing deal with Kinetic Seas.
Oct 02	AI SaaS deal	Positive	-1.9%	New AI financial analytics SaaS partnership with $1M upfront revenue.
Sep 09	Guidance raise	Positive	+13.0%	Q3 2025 guidance calling for 219% revenue growth vs prior year.

Pattern Detected

Positive, AI-focused or growth updates have produced mixed reactions: several strong upside moves but also multiple sell-offs on good AI news, suggesting uneven confidence in execution and capital needs.

Recent Company History

Over the last nine months, Sagtec has reported rapid growth and a series of AI-focused milestones. Q3 2025 guidance on Sep 9 projected 219% revenue growth and saw a double‑digit gain. Subsequent AI platform launches, partnerships and commercialization updates in mid‑2025 often coincided with negative next‑day moves despite ambitious targets. By Nov 25 and Dec 15, audited nine‑month 2025 results showed revenue of $15.1M and net profit of $2.6M, yet price reactions were modest to negative, indicating the market required continued proof of durable, profitable AI revenue. Today’s AI mobility contract extends that same narrative.

Market Pulse Summary

The stock moved +8.7% in the session following this news. A strong positive reaction aligns with Sag...

Analysis

The stock moved +8.7% in the session following this news. A strong positive reaction aligns with Sagtec’s pattern of outsized moves on AI-related contracts and partnerships. Earlier AI milestones produced double‑digit swings, suggesting investors closely track execution on commercial deals. However, past instances also showed sharp reversals after good news, so reliance on a single US$4.0M contract and continued delivery on multi‑year projects could influence how sustainable any move above $1.84 proves over time.

Key Terms

artificial intelligence, ai, dynamic pricing models, demand forecasting, +4 more

8 terms

artificial intelligence technical

"artificial intelligence (“AI”) enabled systems and cloud-based platforms"

Artificial intelligence is the ability of computers and machines to perform tasks that typically require human thinking, such as understanding language, recognizing patterns, or making decisions. For investors, it matters because AI can enhance efficiency, uncover new insights, and enable smarter strategies, potentially impacting the value and performance of companies that develop or utilize this technology.

ai technical

"artificial intelligence (“AI”) enabled systems and cloud-based platforms"

Artificial intelligence (AI) is technology that enables machines to mimic human thinking and learning, allowing them to analyze information, recognize patterns, and make decisions. For investors, AI matters because it can improve how businesses operate, create new products, or identify opportunities faster and more accurately than humans alone, potentially impacting company success and market trends.

dynamic pricing models technical

"Dynamic pricing models to respond to real-time demand and market conditions"

Systems that adjust the price of a product or service in real time based on factors like demand, inventory, competitor prices and customer profiles. Think of it like surge pricing for rides or fluctuating airline fares: it helps a business capture higher revenue when demand is strong and move stock when demand is weak, which can boost sales, margins and competitive position but also introduces reliance on data, customer reaction and potential regulatory or reputational risk.

demand forecasting technical

"Demand forecasting to optimize fleet availability and utilization"

Demand forecasting is the process of predicting how much of a product or service customers will want in the future, using past sales, market signals and trend information—like a baker estimating how many loaves to bake for next week. It matters to investors because these predictions drive revenue planning, inventory, production and spending decisions; accurate forecasts support steady profits and efficient use of capital, while big misses can hurt sales, margins and company value.

cloud infrastructure technical

"covering cloud infrastructure, data management and AI-driven analytics services"

Cloud infrastructure is the network of remote servers, storage, networking and basic software that companies rent over the internet instead of owning their own physical data centers — like using a utility grid or renting a fully equipped office rather than buying a building and furniture. Investors care because it changes how a company spends money, scales operations, launches products and manages risk: it can lower upfront costs, speed growth, concentrate vendor or outage risk, and influence recurring revenue and margins.

subscription-based services technical

"subscription-based services and marketplace functionalities into a single"

Subscription-based services are businesses that sell ongoing access to a product or service for a regular fee, like a gym membership or a streaming app charging monthly payments. For investors this matters because the steady, repeat payments create more predictable revenue and let companies build long-term customer value, but performance depends on how many customers renew, how much each pays, and how easily the business can add and keep subscribers.

peer-to-peer marketplace technical

"peer-to-peer marketplace modelRide-hailing services, enabling on-demand"

A peer-to-peer marketplace is an online platform that connects individual buyers and sellers directly to trade goods, services, or loans, similar to an organized digital garage sale where the site just brings people together. Investors watch these platforms because their value depends on user growth, trust between participants, fees per transaction and rules that affect safety and liability — factors that drive revenue, costs and long-term usefulness.

transaction processing technical

"including user management, transaction processing and operational controls"

The series of steps that take a financial action—such as a trade, payment, or account update—from initiation to completion, including verification, recording and confirmation. Investors care because faster, accurate and secure processing reduces errors, lowers costs, ensures regulatory compliance and preserves customer trust—similar to a restaurant kitchen turning orders into finished plates reliably and on time, which keeps customers coming back and operations profitable.

AI-generated analysis. Not financial advice.

KUALA LUMPUR, Malaysia, Jan. 14, 2026 (GLOBE NEWSWIRE) -- Sagtec Global Limited (“Sagtec” or the “Company”), a total technology solutions provider focused on delivering customizable software solutions, artificial intelligence (“AI”) enabled systems and cloud-based platforms, today announced that on January 5, 2026 it entered into a software development agreement with Grandpride Luxury Travel Sdn. Bhd. (the “Client”) (the “Agreement”).

Pursuant to the Agreement, Sagtec will design, develop, implement and support a software system known as the Smart AI E-Hailing, Car Rental and Subscription System (the “Platform”), a comprehensive digital mobility solution intended to integrate ride-hailing, vehicle rental, subscription-based services and marketplace functionalities into a single scalable platform.

Project Overview and Scope

The Platform is designed to support multiple mobility and digital commerce use cases, including:

• Long-term vehicle rental services, catering to subscription-based and corporate users
• Short-term vehicle rental services, incorporating both company-owned fleet operations and a peer-to-peer marketplace model
• Ride-hailing services, enabling on-demand transportation functionality
• Local business directory and review features, providing discovery and user engagement capabilities
• Platform-wide shared services and governance, including user management, transaction processing and operational controls
  

The Platform is expected to be developed with scalability and extensibility in mind, allowing future feature enhancements and service expansion.

Initial development is expected to commence in Q1 2026, with a phased rollout targeted within approximately three to eight months. This is faster compared to industry-standard enterprise software development cycles, and the anticipated timeline for this project reflects Sagtec’s advance planning approach and the use of the Skilliks Planner (“Skilliks Planner”) developed by Kinetic Seas Incorporated (“Kinetic Seas”), Sagtec’s exclusive AI development and technology partner across Malaysia, Indonesia, Singapore and the Philippines.

AI Integration and Capabilities

AI functionality will be embedded across the Platform to enhance operational efficiency, user experience and decision-making, including:

• Demand forecasting to optimize fleet availability and utilization
• Dynamic pricing models to respond to real-time demand and market conditions
• Fleet optimization and analytics to improve vehicle deployment, maintenance planning and cost efficiency
• User personalization to tailor services, recommendations and promotions

These AI-driven capabilities are designed to support data-driven operations while enabling scalable growth across multiple mobility services.

Commercial Terms

Pursuant to the Agreement, the aggregate contract value is US$4.0 million, consisting of the following components:

• licensing and custom software development services in an aggregate amount of US$1.6 million, covering system architecture design, software development, testing and delivery of the Platform, with fees payable in milestone-based instalments tied to the completion and acceptance of defined development phases;
  
  
• service and maintenance services with an aggregate value of US$1.2 million, to be provided over a five-year period following the Client’s final acceptance of the Platform, providing ongoing technical support, system maintenance, upgrades and enhancements, with fees payable on a monthly basis; and
  
  
• data hosting and analytics services with an aggregate value of US$1.2 million, to be provided over a five-year period following the Client’s final acceptance of the Platform, covering cloud infrastructure, data management and AI-driven analytics services, with fees payable on a monthly basis.
  

Technology Platform and Development Approach

The Platform will be developed and delivered using Sagtec’s recently acquired Kinetic Seas’ Skilliks_my AI technology platform (“Skilliks Platform”). Through its collaborative agreement with Kinetic Seas, the developer of the Skilliks Platform and Skilliks Planner, Sagtec is able to harness enterprise-grade AI capabilities without incurring the substantial capital expenditure typically associated with building large-scale AI infrastructure from the ground up.

This approach significantly reduces upfront development costs, accelerates time-to-market and enables Sagtec to deploy proven, scalable AI solutions across this project as well as its broader client portfolio.

Strategic Impact

Ng Chen Lok (Kevin), Chief Executive Officer of Sagtec Global Limited, said:

“The use of Skilliks_my and the Skilliks Planner enhances our ability to translate client discussions into build-ready software plans, allowing our teams to execute more efficiently and with reduced delivery risk. This capability improves our competitiveness and supports disciplined scaling as demand for AI-enabled mobility and digital platforms continues to grow across the ASEAN region.”

This Agreement reflects Sagtec’s continued execution of its strategy to deliver large-scale, mission-critical software platforms while expanding its base of long-term, recurring service, maintenance and hosting revenue.

About Grandpride Luxury Travel Sdn. Bhd.

Grandpride Luxury Travel Sdn. Bhd. is a Malaysia-based luxury travel and mobility services provider focused on delivering premium transportation, rental and bespoke travel solutions. The company operates across key urban and tourism markets, serving both individual and corporate clients with an emphasis on service quality, operational excellence and customer experience.

About Kinetic Seas

Kinetic Seas is the developer of the Skilliks Platform and Skilliks Planner, and Sagtec’s exclusive AI development and technology partner across Malaysia, Indonesia, Singapore and the Philippines. The partnership supports the co-creation, deployment and scaling of AI-enabled enterprise solutions across the ASEAN region.

About Sagtec Global Limited

Sagtec Global Limited (NASDAQ: SAGT) is a leading provider of digital transformation and SaaS solutions, empowering over 12,000 businesses across Southeast Asia with the tools to enhance efficiency, automation, and market competitiveness. For more information on the Company, please log on to https://www.sagtec-global.com/.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the Company’s current expectations, estimates and projections about its business, industry and future results, and involve known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements may include, but are not limited to, statements regarding the expected scope, performance, timing and benefits of the Platform, the Company’s ability to deliver the project as contemplated, and the anticipated impact of the agreement on the Company’s business and financial condition. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update or revise any forward-looking statements, except as required by law.

Contact Information:

Sagtec Global Limited Contact:
Zainab Fateema binti Mustafa
Head of Public Relations & Corporate Affairs
Telephone +6011-6217 3661
Email: info.pr@sagtec-global.com

FAQ

What is the value of the Sagtec (SAGT) software deal announced January 14, 2026?

Sagtec announced a US$4.0 million contract to develop and support an AI-driven mobility platform.

When will Sagtec (SAGT) start development and what is the rollout timeline?

Initial development is expected to commence in Q1 2026 with a phased rollout targeted within approximately 3–8 months.

How is the US$4.0M contract for SAGT structured between development and recurring fees?

The contract splits into US$1.6M for licensing and development, US$1.2M for five years of service and maintenance, and US$1.2M for five years of hosting and analytics.

What AI capabilities will Sagtec (SAGT) deliver in the Smart AI mobility platform?

The Platform will include demand forecasting, dynamic pricing, fleet optimization analytics and user personalization.

Does the Sagtec (SAGT) project create recurring revenue?

Yes; the agreement includes US$2.4M of service and hosting fees payable over a five-year period.

What technology will Sagtec (SAGT) use to accelerate delivery of the mobility platform?

Sagtec will use the Skilliks_my platform and the Skilliks Planner via its partnership with Kinetic Seas to reduce upfront AI infrastructure needs.