• Infomina, via its subsidiary Infomina (Thailand) Co Ltd, has secured RM35.4mn contract with Bangkok Bank. The contract covers technology application and infrastructure services, for a period of 3-year until Mar 30, 2026.

• We are positive with this contract as it will boost its orderbook by 7.4% to RM480.1m. Furthermore, this also underscores Infomina's expertise in mainframe technologies and IT transformation given Bangkok Bank's prominence in Thailand.

• We maintain our earnings estimates as this is within our initial orderbook assumptions.

• Reiterate our BUY call on Infomina at TP of RM1.96, derived based on 22x PER (15% discount to 5-year sector average of 25.9x) and CY24F EPS of 8.9sen. Secured Renewal Contract from Bangkok Bank

Infomina Berhad announced that it has successfully obtained a contract worth RM35.4mn from Bangkok Bank Pcl. This contract pertains to the provision of technology application and infrastructure operation services which falls under its renewal segment (provision of technology application and infrastructure operations). The duration of the contract is for a period of three years, starting from March 31, 2023, and concluding on March 30, 2026.

Our View

We are positive with this software subscription agreement (SSA) with Bangkok Bank as it will grow its existing orderbook by 7.4% to RM480.1mn from RM447.1mn. This is also supported by its tenderbook amounted to RM500mn (as at May 2023). In addition, we view the prominent status of Bangkok Bank as a leading financial institution in Thailand and the broader ASEAN region substantiates Infomina's expertise in mainframe technologies and IT transformation.

Earnings Forecast

No adjustments were made our FY24-25F earnings projections, which already account for the renewal of a service support contract with Bangkok Bank Public Company Limited.

Maintain BUY Call with unchanged TP RM1.96 Maintain a BUY call with unchanged TP of RM1.96 pegged at 22x PER (15% discount to 5-year sector average of 25.9x) and CY24F EPS of 8.9sen. The discount applied is taking into consideration the potential downside risks associated with the current US banking crisis, particularly considering the group's significant exposure in the financial industry.

Source: BIMB Securities Research - 8 Oct 2023