ITMAX

[winston]

not vested

HLIB starts coverage on ITMAX with Buy rating, target price of RM1.70

by Surin Murugiah

KUALA LUMPUR (Dec 13): Hong Leong IB Research has initiated coverage on ITMAX System Bhd with a “Buy” rating at RM1.07 and target price (TP) of RM1.70.

ITMAX operates in two business activities, namely;-
(i) supply and installation of networked systems; and
(ii) provision of networked facilities, whereby it is a PaaS provider which supplies an integrated and holistic services comprising of IaaS, SaaS, AIaaS and DBaaS.

In a note on Tuesday (Dec 13), HLIB said ITMAX’s competitive advantages include:
(i) in –house R&D team for the design and development of public space networked system;
(ii) sustainable business model with project based and recurrent revenue;
(iii) ownership of MAN in Kuala Lumpur; and
(iv) healthy order and tender books.

“We ascribe a P/E multiple of 25x for ITMAX pegged to FY24f earnings, resulting in a TP of RM1.70.

“As there is no exact local comparable, the multiple ascribed is in line with its global peers’ average of 24.5x which consists of smart city solution providers, PaaS, IaaS, SaaS, AIaaS and DB aaS players.

“At about only 15.7x FY24f earnings in on its debut, we believe that this home-grown smart city integrated system and solution provider is a compelling case given its multi-year growth potential on the back of solid order and tender books,” it said.

Source: The Edge

https://www.theedgemarkets.com/article/ ... rice-rm170

[winston]

not vested

Dec 13, 2022

Public space networked systems provider ITMAX gains 29% on Main Market debut

by Syafiqah Salim

Plans to increase video surveillance facilities (artificial intelligence cameras) in Kuala Lumpur to 50,000 over the next 10 years as part of its expansion plans.

“Now we have 5,000 cameras in KL, compared to around 1,000 cameras in 2018. But to cover blind spots we need 50,000 cameras in the city. It will take some time, 10 years is achievable”.

ITMAX is principally involved in the business of supply and installation and provision of public space networked systems and investment holdings.

IPO price of RM1.07.

About RM600m orderbook to provide earnings visibility until FY2029
ITMAX has secured 19 contracts and has a current orderbook of about RM600 million, which provides earnings visibility until the financial year 2029 (FY2029).

About 70% of the company's total order book (RM420 million) came from its major single customer DBKL, Tan said.

“We will also get contracts from Home Affairs Ministry and other local councils.

Its profit after tax climbed to RM29.2 million in FY2021, compared with RM12.7 million in FY2020 and RM1.6 million in FY2019.

Revenue grew to RM79.8 million in FY2021 from RM47.5 million in FY2020 and RM37.2 million in FY2019.

Strong balance sheet with a net cash position of RM146 million (or 14 sen per share).

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... rice-rm107

[winston]

not vested

3Q Results

Revenue: +48%, RM 31m
EPS: +77%

https://www.bursamalaysia.com/market_in ... id=3300625

[winston]

not vested

ITMAX bags RM539mil DBKL contract for AI surveillance system

Will install 5,000 closed circuit cameras

The contract spans 10 years, comprising a one-year installation phase followed by a nine-year subscription phase.

With this expansion, our video surveillance system will now encompass 10,000 intelligent surveillance units.

Source: The Star

https://www.thestar.com.my/business/bus ... nce-system

[winston]

not vested

VO11 to double ITMAX’s CCTVs in KL by 2025

BUY maintained with a higher TP of MYR4.25

The timing of DBKL’s contract award of Variation Order 11 (VO11) was a positive surprise that will catalyse ITMAX’s long-term earnings growth trajectory.

We revise FY24-26E earnings by -8%/0%/+15%.

Our PEG-derived TP (Fig. 1) is raised to MYR4.25 (+21%), after
(i) rolling-forward valuation to FY25E (from FY24E),
(ii) updating the regional peer mean to 1.4x (from 1.5x), and
(iii) imputing for a higher 2Y CNP CAGR (FY24E-26E) of 30% (from a 3Y CNP CAGR [FY23-26E] of 21% previously).

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/399820.pdf

[winston]

not vested

ITMAX Systems (ITMAX MK) Lands Sizeable DBKL CCTV Contract

ITMAX has secured another major contract from DBKL for the installation of an additional 5,000 CCTV units, amounting to RM539.5m. This brings the total number of CCTVs in Kuala Lumpur to 10,000, aligning with the government's target of 20,000 CCTVs.

Further growth impetus could come from Johor and Penang, which are significantly underpenetrated markets compared with Kuala Lumpur.

Upgrade 2025/26 earnings by 8/11%.

Maintain BUY with a higher target price of RM4.10.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

2Q24: Seeing continuous growth

BUY maintained; top pick for MY software

ITMAX’s 1H24 results was satisfactory, with earnings momentum expected to pick up in 2H as more CCTV units are added to its network in Johor.

Our FY24-26E earnings forecasts are unchanged.

Our BUY rating and 1.4x PEG derived TP of MYR4.25 are also maintained.

ITMAX remains our top MY software pick for its robust growth offering 2Y [FY24-26E] CNP CAGR of 30% and with a compelling outlook as MY’s leading “smart city” player.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/401846.pdf

[winston]

not vested

HLIB Retail Research – 27 July – Bullish Tracker: ITMAX (RM4.60)
 
ITMAX: Base-building at RM4.53 before resuming uptrend
 
Key supports sit at RM4.53 (23.6% FR), RM4.37, and RM4.32, with a disciplined cut-loss set at RM4.36.
 
Prospects for 2H26 remain constructive, supported by growing traction in the JB smart parking segment and the full reflection of DBKL’s 5k CCTV rollout.
 
Digital twin unlocks next structural growth lever. The ~RM600m MBJB variation order secured in Apr-26 includes a digital twin contract generating c.RM2–3m p.a. over an initial 2km² scope. While near-term contribution is modest, scalability is immense given MBJB's c.300km² area and the broader c.3,588km² Johor SEZ expanse.

This massive addressable runway is complemented by modular upselling like Samurai AI. Beyond Johor, ITMAX is finalising pricing with DBKL for a 3km² initial scope, capturing just a fraction of its c.243km² total land area.
 
Reiterate BUY with a DCF-derived TP of RM6.00 (WACC: 7.0%, TG: 3.0%). Our terminal growth rate reflects a multi-year structural runway for CCTV deployments across Malaysia, underpinned by smart city initiatives.

To contextualise the opportunity, ITMAX’s 10k CCTV rollout for DBKL is dwarfed by Singapore’s existing 90k network, targeting 200k units by 2030.

Over time, ITMAX should further monetise its fibre infrastructure via higher-value applications (e.g., digital twins, traffic analytics), cementing its role as a key urban digital transformation enabler.
 
Entry Price: RM4.37-4.53-4.60
Resistance: RM4.77-4.88-5.09
Potential Upside Target: RM5.09
Cut loss: RM4.36
 
Source: HLIB

[winston]

not vested

5309 ITMAX (BUY)
Bags another street light contract

ITMAX has accepted an LOA worth RM120m from DBKL for the supply, installation and maintenance of smart street lighting system.

This award replaces the previous contract first secured in 2016, which was subsequently extended in 2021 and 2023 and expired on 31 July 2026.

Looking ahead, we expect a few thousand CCTV units to be awarded across the greater Johor region in 2H26, with Kota Kinabalu offering potential upside.

The DBKL digital twin contract is also likely to be finalised over the same period, while the next phase of DBKL’s CCTV rollout could materialise in 2027.

Maintain BUY with an unchanged TP of RM6.00.

Source: HLIB

[winston]

not vested

5309 ITMAX (BUY)
Hello Sabah

ITMAX has accepted the notification of approval as the Universal Service Provider for the Kota Kinabalu Smart City Project worth RM134m from MCMC.

We gather that the project mainly covers a Network Operation Command Centre and c.1.5k CCTVs, with supply and installation revenue recognised over the first two years, followed by five years of managed services.

ITMAX’s successful expansion into Sabah, beyond its bread-and-butter DBKL market, reinforces the competitiveness of its smart-city solutions.

Selangor is the next key state to watch, with CCTV contracts potentially coming up for tender in 2027–2028 following the award of SIP Phase 2, which we estimate could take place in 1H27.

Maintain BUY with an unchanged TP of RM6.00.

Source: HLIB