Amid the flourishing landscape of the Information Technology (IT) industry, both large enterprises and small to medium-sized businesses are actively engaging in digital transformation. The advantages of such transformations include heightened production and operational efficiency, more effective resource management, in-depth analysis utilizing big data, and substantial cost savings in technology infrastructure investments.

Just days ago, Malaysian leading IT solutions provider, Infomina Berhad (INFOM, 0265), released an impressive performance report, revealing year-on-year (YoY) and quarter-on-quarter (QoQ) growth in both revenue and profitability. Without further ado, let's delve into the latest financial results unveiled by INFOM.

Revenue Comparison (YoY +41.85%, QoQ +6.11%)

As of November 30, 2023, the company's revenue stands at approximately RM59.65 million, marking an increase of around 41.85% compared to the same period last year, where it was RM42.05 million. Management attributes this growth to new contracts secured in Malaysia for the design and delivery of technology infrastructure solutions and higher revenue from renewed contracts in technology infrastructure operations, maintenance, and support services, particularly in Thailand and the Philippines.

Out of the RM59.65 million revenue, approximately RM36.90 million is derived from technology infrastructure operations, maintenance, and support services, reflecting a YoY growth of approximately 35.70%. The remaining RM22.75 million comes from the design and delivery of technology infrastructure solutions, representing a YoY increase of approximately 53.17%.

In addition, compared to the preceding quarter, the company's revenue has increased by approximately RM3.44 million or 6.11%, primarily attributed to new contracts secured in Malaysia. It is noteworthy that this contract was likely obtained by INFOM in early November of the previous year from the Home Affairs Ministry for the maintenance, upgrades, and technical support services of the National Registration Department's applications.

Net Profit Comparison (YoY +77.22%, QoQ +23.10%)

Driven by the overall growth in business income, INFOM achieved a net profit of approximately RM8.95 million, representing a significant YoY increase of approximately 77.22%. In addition to the growth in business revenue, the administrative expenses for this quarter significantly decreased, as there were IPO-related expenses in the same period last year.

In comparison to the preceding quarter, the company's net profit increased by approximately RM1.68 million or 23.10%, primarily driven by the improved profit margin in the design and delivery of technology infrastructure solutions.

Notably, INFOM is currently a net cash company, holding a total cash balance of approximately RM57.78 million for this quarter.

Outlook

Management anticipates significant growth in the IT industry, driven by the rapid implementation of artificial intelligence and the widespread use of Application Programming Interfaces (APIs). Accordingly, the company aims to expand its business footprint further into North Asia, especially in China, Hong Kong, and Japan. It's worth mentioning that INFOM has established a subsidiary in Japan, and the subsidiary is expected to contribute to revenue starting from the beginning of FY2025.

Moreover, INFOM's outstanding order book has reached approximately RM430.00 million, indicating a promising outlook for sustained growth in both revenue and profitability in the future.

So, dear readers, what are your thoughts on INFOM, with the current P/E ratio standing at approximately 20.21 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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