KUALA LUMPUR, Oct 8 (Bernama) -- ITMAX System Bhd's shares on Bursa Malaysia rose in the early session today after the group’s subsidiary was appointed as the smart parking operator for 8,640 street parking bays by the Muar Municipal Council (MPM), Johor.
At 10.24 am, the group’s share price rose six sen to RM3.60 with 757,800 shares changing hands.
The 15-year contract was awarded to ITMAX's 65 per cent-owned subsidiary, Southmax Sdn Bhd, starting from Oct 1, 2024 to Sept 30, 2039.
As such, Maybank Investment Bank Bhd has maintained its 'buy' call on the group’s shares, with a target price of RM4.40, premised on ITMAX’s compelling prospects as Malaysia’s leading smart city player.
“We tweak ITMAX’s financial years 2024, 2025 and 2026 projected earnings by an additional 1.0 per cent, 2.0 per cent and 2.0 per cent, respectively, to account for the higher smart parking contribution," it said in a note today.
Meanwhile, Hong Leong Investment Bank Bhd remains upbeat on ITMAX, believing that the group’s latest contract win will propel its earnings to the next level.
"This is the fifth job win relating to smart parking solutions after securing contracts from Iskandar Puteri City Council in June 2024, Kulai Municipal Council in July 2024, and the Tangkak District Council as well as the Segamat Municipal Council in Sept 2024.
"With this, we are confident that the group would be able to expand its reach to another 11 districts in Johor," it added.
-- BERNAMA
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