• We maintain HOLD recommendation on Infomina with an unchanged fair value of RM1.82/share, pegged to FY24F PE of 25x, in line with its closest industry peers' average forward. The FV also reflects an unchanged neutral ESG rating of 3-stars.

• We made no changes to FY24F-26F earnings which have already incorporated the renewal of a service support contract for Bangkok Bank Public Company Limited (BBL).

• Infomina entered into a software subscription agreement for the provision of technology application and infrastructure operations, maintenance and support services for RM35mil (USD7.5mil) to BBL under a renewal contract for 3 years starting from 31 March 2023 to 30 March 2026.

• We are positive on this project, estimated to have a gross margin of 30% and will support Infomina’s FY24F-FY26F earnings growth of 3%-11%.

• The stock currently trades fairly at FY24F PE of 21x, in line with the Bursa Technology Index’s 5-year forward average.

Source: AmInvest Research - 6 Oct 2023