Variation order for ITMAX a positive surprise: Maybank IB

ITMAX System Bhd’s recent Variation Order No. 7 (VO7) contract secured from Kuala Lumpur City Hall (DBKL) is expected to increase the group’s turnover by approximately RM23.6 million for the fiscal years 2024 to 2025 estimates (FY2425E), said Maybank Investment Bank (Maybank IB).

In a note yesterday , the research house said the contract came as a positive surprise last week as there had been no prior indication of additional scope of work for the existing contract.

“We maintain FY23E earnings, but raise FY24E and 25E by 14% and 12%, respectively. Our target price (TP) is also nudged 30 sen higher to RM2.40 (+14%).

“We peg our TP to unchanged 24.4 times FY24E price-toearnings ratio (PER), a 20% premium to the simple PER average of its comparable peers,” it said.

Maybank IB also said that it continues to like ITMAX for its cost, security, and technical advantages over its peers.

Incorporated on Oct 26, 2001, ITMAX System Bhd is a leading solution provider in the field of Public Space Networked Systems and related Artificial Intelligence. ITMAX core strength is in developing Networking Solutions for Lighting Systems, Traffic Management Systems, Video Surveillance, Communication Network, and related Artificial Intelligence. It’s mission is to create and design sustainable digital solutions that drive efficiency and productivity.

As the premier Provider of Public Space Networked Systems, ITMAX’s endeavour is to ideate, incubate and create cutting-edge technology solutions that promote sustainable living in efficiently managed Cities, Townships, and Enterprises. – Bernama