Infomina Bhd (Infomina) will be making its debut on Bursa Ace Market today. The company is principally involved in the Design and Implementation of Technology Application and Infrastructure Solutions. Infomina specializes in Mainframe Technology Solutions. As at September 2022, the company has orders of RM443.6m yet to be recognized whereby RM289.6m of them are subject for renewal, which should provide good earnings visibility over the mid-term. We forecast Infomina to register net earnings of RM18.4m and RM20.3m for FY5/23 and FY5/24 respectively. BUY with a TP of RM0.61 based on 18x PER (40% discount to Bursa Malaysia Technology Index 5 years average given its smaller market capitalisation) over FY5/24 EPS.

Infomina’s technology application and infrastructure solutions are tailor made to suit customers based on their business needs, industry practices as well as technological developments. The company also deliver its solutions based on detailed understanding of the current and anticipated business needs, people, processes and technology requirements of its customers which involves (i) detailed assessment of customers’ existing infrastructure; (ii) design of solutions and corresponding business processes; and (iii) integration of hardware and software.

The company has a diverse customer base across Asia in both private and public sectors. Private sectors include medium sized to large MNCs and local business enterprises as well as government linked companies within the financial services, telecommunications and automotive sectors. As for the public sector, the customers include government agencies and statutory bodies.

Infomina plans to strengthen and expand its Technology Infrastructure Solutions business. In Jun 2022 Project Wspace was relaunched as VIDESPACE upon successful registration of the VIDESPACE trademark which is made available for public download on Google Play Store and Apple Store. Target segments include all sizes of businesses and community collaborations, be it for companies or non-profit organisations such as clubs and associations, education centres or amongst the local communities.

Looking to further enhance its regional presence, Infomina plans to recruit additional sales and technical staff for regional offices to increase competitiveness and quality of core services.

Infomina does not have any formal dividend policy and plans to utilize its resources to grow its business. Based on the latest quarterly results, the company a net gearing of less than 0.1x. As the proceeds from IPO will be used to expand its businesses, we expect the company to maintain its current low gearing level.

Source: Rakuten Research - 25 Nov 2022