KUALA LUMPUR, Aug 19 (Bernama) -- ITMAX System Bhd's shares were among the most active in early trading after the company announced a RM539 million contract with Kuala Lumpur City Hall (DBKL).
At 10.30 am, ITMAX shares inched up by 1.0 sen to RM3.50, with 530,900 shares traded on Bursa Malaysia.
The contract involves the deployment of ITMAX’s artificial intelligence (AI)-enhanced video surveillance system throughout the city.
Hong Leong Investment Bank Bhd (HLIB) views this development positively, as it enhances ITMAX’s recurring income stream visibility.
"This installation of an additional 5,000 closed-circuit televisions (CCTVs) is notable, considering DBKL has historically added only 1,000 CCTVs annually.
"Additionally, the contract duration is nine years, longer than the previous terms of six to seven years,” it said.
HLIB raised its earnings forecast for ITMAX by 17 per cent for 2026, reflecting the new contract, and increased the target price (TP) to RM4.71 from RM4.00.
It reiterated its ‘Buy’ recommendation for the company.
Meanwhile, Maybank Investment Bank Bhd observed that the timing of DBKL’s contract award was an unexpected positive catalyst for ITMAX’s long-term earnings growth.
“We have revised our earnings forecasts for 2024, 2025, and 2026 by -8 per cent, 0 per cent, and +15 per cent, respectively, and maintained our ‘Buy’ call, with a higher TP of RM4.25,” it added.
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