Following the successful securing of a major project contract in Johor, ITMAX System Berhad (ITMAX, 5309) has recently announced yet another positive development - the company has reached new highs in both revenue and profit for the latest third quarter. Without further ado, let's delve into the details of ITMAX's latest financial performance.

Revenue Comparison (YoY +26.90%, QoQ +17.12%)

As of September 30, the company reported a revenue of approximately RM39.06 million, representing an impressive increase of around 26.90% compared to the same period last year when revenue stood at RM30.78 million. A closer examination of the quarterly report reveals that this revenue surge is attributed to the successful completion of certain project contracts involving the installation and commissioning of video surveillance facilities.

Out of the RM39.06 million revenue, approximately RM22.42 million is derived from the video surveillance and analytics business, indicating a YoY growth of around 5.44%. Notably, this business segment contributes significantly to the company's overall revenue and is characterized by recurring income. Additionally, revenue of about RM15.33 million comes from the supply, installation, and maintenance business, reflecting an impressive YoY growth of 88.51%.

Comparing with the previous quarter, the company's revenue has increased by approximately RM5.71 million or 17.12%. This QoQ growth is attributed to the commencement of supply and installation works for a hospital contract during the quarter, believed to be associated with the electromechanical project awarded several months ago by Segamat Specialist Hospital, with a duration of a year and a half (from July 1, 2023, to December 31, 2024).

Net Profit Comparison (YoY +32.60%, QoQ +7.87%)

Benefiting from the robust business income generated through efficient contract completions, ITMAX achieved a net profit of approximately RM16.31 million for this quarter. This represents a YoY increase of approximately 32.60% and a QoQ increase of approximately 7.87%.

It's noteworthy that ITMAX is a net cash company, holding a substantial cash and cash equivalent of around RM197.23 million as of September 30.

Outlook

Driven by strong order and tender book momentum, the management maintains a cautiously optimistic outlook for the company's future. As of September 2023, ITMAX's unbilled order book has reached RM870.00 million, while the value of its tender book is approximately RM600.00 million.

In conclusion, dear readers, what are your thoughts on ITMAX, currently trading at a P/E ratio of approximately 31.32 times?

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Disclaimer: The above is purely for educational purposes and reflects personal opinions. It does not constitute any buying or selling recommendations.

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