• Maintain BUY. TP (RM1.78). Infomina FY24 core PATAMI of RM32.5mn was within our in-house and market expectation, making up 99.4% and 95.4% respectively. During 4QFY24, revenue jumped 15.3% QoQ, thanks to encouraging revenue from Renewal (22.6% QoQ) segment. Also, operating profit improved 5.5% QoQ, underpinned by better earnings from Renewal segment (+55.4% QoQ) despite muted contribution from Turnkey (-65.8% QoQ). We maintain a positive outlook on the group's strategic initiative to expand its presence in North Asia such as Japan, and concurrently strengthening its position in regional countries like Thailand and the Philippines. Leveraging Infomina's R&D and technological expertise, we are optimistic about its ability to effectively secure both turnkey and renewal projects. We make no changes to FY25-26F earnings assumption. Maintain a BUY call on Infomina with unchanged TP of RM1.78.

• Key Highlight. For FY24, revenue down by 10.4% YoY due to a high base effect from a one-off overage fee charged to a customer for higher-thanexpected utilization in the previous year. Overall, the group's revenue was bolstered by an improved performance in the Turnkey segment (revenue: +21% YoY).

• Forecast. Unchanged. We introduced FY27F earnings forecast of RM60.1mn which translate into 15.6% net profit margin.

• Outlook. Infomina is optimistic about its strategic investments in research, development, and technology. Focusing on the innovation, the group aims to attract new customers, promote business growth, and strengthen its brand both locally and globally. Addition, the rapid adoption of Artificial Intelligence (AI) and the widespread use of Application Programming Interfaces (APIs) are expected to benefit Infomina within the IT supply chain.

• Our call. Maintain a BUY call with unchanged TP of RM1.78. Our valuation pegged at 23.4x PER (10% discount to weightage sector average of 26x) and FY25F EPS of 7.6sen. The discount is applied to account for potential downside risks associated with the drawdown of contracts from Renewal customers and lower-than-expected contracts from the Turnkey segment.

Source: BIMB Securities Research - 26 Jul 2024