Infomina Berhad (Infomina) registered a core PATAMI of RM22.5mn in  3QFY23 (+347.7% QoQ), bringing 9MFY23 core PATAMI of RM32.7mn.  The result came in above our and market forecast at 135% and 138%  respectively. The group is anticipated to record a reliable and steady revenue stream from its orderbook, particularly within the Renewal segment. Maintain HOLD on Infomina, with higher TP of RM1.72.

• Above expectations. 9MFY23 core PATAMI of RM32.7mn was above our in-house and street estimates, making up 135% and 138% respectively given higher-than-expected contract recognition from Renewal segment particularly from financial services institutions and government agencies in the Group’s key markets (Malaysia, Thailand, and Philippines) and the region.

• Dividend. No dividend was declared during the quarter under review.

• QoQ. Revenue up 161% QoQ on the back of encouraging PBT, jumped  318.2% QoQ. This was further aided by stellar contribution from Renewal segment (revenue: +223% QoQ, OP: +443.9% QoQ) following upwards revision of rates for existing customers and new contracts which were take effective during 3QFY23, as well as overage fee charged to customers due to higher-than-expected utilisation.

• YoY. There are no comparative figures for the corresponding year’s quarter.

• YTD. As for 9MFY23, Infomina recorded revenue of RM193.7mn and a PBT  of RM39mn, thanks to robust contribution from Renewal segment (revenue & OP stood at RM144.5mn and RM46.7mn respectively).  Renewal segment, which make up 74.6% of total revenue during this period were mainly comes from renewal projects to financial institutions and government agencies in its key markets, including Malaysia, Thailand, Philippines, and the surrounding region.

• Outlook. On 5 April 2023, Infomina received an Acceptance Letter from  Companies Commission of Malaysia (SSM) dated 29 March 2023,  appointing them to provide a platform for public data search, extraction,  and purchase of registered company and business data. The appointment is for six years, starting from 31 March 23 to 30 March 29, with service fees based on actual platform usage as per appointment terms. Moving forward, the group is confident in its plans to invest in research and development whilst expand its technology offerings, explore new markets for business growth, and enhance its brand presence.

• Forecast. In view of higher-than-expected earnings forecast, we tweak higher our FY23F-FY25F earnings by 45.4-78.6%.

• Maintain HOLD, TP: RM1.72. Maintain HOLD call with higher Target Price of RM1.72 (RM1.50 previously) pegged at 20.7x PER (20% discount to 5-year sector average of 25.9x) and CY24F EPS of 8.3sen (5.5sen previously). Our recommendation is justified based on our conservative assessment on Infomina's short-term outlook, taking into consideration the potential downside risks associated with the current US banking crisis, particularly in light of the group's significant exposure in the financial industry.

Source: BIMB Securities Research - 14 Apr 2023