KUALA LUMPUR (Sept 10): ITMAX System Bhd’s (KL:ITMAX) non-independent executive director Datin Afinaliza Zainal Abidin has ceased to be a substantial shareholder of the smart city integrated system solution provider after disposing of 61.9 million shares.
Afinaliza, through her private vehicle Ganda Sensasi Sdn Bhd, sold the block of shares in off-market transactions on Sept 6 for over RM201.1 million, according to ITMAX's bourse filing on Tuesday. The identity of the buyer was not disclosed.
A check on Bloomberg showed that the shares were transacted in eight blocks at RM3.25 apiece. This is a discount of 1.81% compared to the stock's closing price of RM3.31 on Sept 6.
The disposal reduced Afinaliza's stake in ITMAX to 4.58%, below the 5% threshold required for substantial shareholding status, down from 10.6%.
ITMAX’s remaining substantial shareholders are its non-executive director and major shareholder Tan Sri Tan Boon Hock, along with his son, managing director and chief executive officer William Tan Wei Lun. Together, they control a 53.26% stake through Sena Holdings Sdn Bhd.
Shares in ITMAX closed two sen, or 0.6%, lower at RM3.28 on Tuesday, giving the company a market capitalisation of RM3.38 billion. Year-to-date, the stock has risen by over 83.24%.
ITMAX anticipates significant growth in demand for smart city solutions, driven by the rapid urbanization process occurring across Malaysia. Notably, the Malaysian government has established the Malaysian Smart City Framework, providing national-level guidelines aimed at expediting the transformation into smart cities. Therefore, ITMAX received multiple inquiries from potential customers regarding the adoption of smart city solutions. In our steadfast commitment to enhancing our services for our clients, our research and development (“R&D”) department has developed 31 artificial intelligence (“AI”) features. These in-house AI features not only increase the efficiency in city management but also contribute to our financial performance. Moving forward, we will continue to invest in expanding our services portfolio to maximise the value we deliver to our clients. Furthermore, we have made significant investments in our technological infrastructure by upgrading our AI servers to the DGX H100, one of the most powerful servers offered by NVIDIA, a leading company in the design and manufacturing of AI and computer graphics processors. We are confident that this upgrade will enhance our capability in the R&D processes, enabling us to develop tailor-made solutions to address our clients’ pain points effectively. In line with our strategy to extend our geographical footprint, we continue to make strides in our expansion into Johor, as supported by the numerous contracts we have secured in Johor over the past year. Besides Johor, we are actively engaging with other states. In addition, ITMAX targets to grow its presence in the enterprise sector, capitalising on the increasing demand in this market segment.
LIST OF THIRTY (30) LARGEST SHAREHOLDERS 1. Maybank Nominees (Tempatan) Sdn Bhd Maybank Private Wealth Management For Sena Holdings Sdn. Bhd. (12022639) (444576) 430,600,000 41.84 2. Ganda Sensasi Sdn Bhd 109,000,000 10.59 3. Hsbc Nominees (Tempatan) Sdn Bhd Sena Holdings Sdn. Bhd. 65,000,000 6.31 4. Citigroup Nominees (Tempatan) Sdn Bhd Cbhk Pbgsg For Sena Holdings Sdn. Bhd 52,000,000 5.05 5. Citigroup Nominees (Tempatan) Sdn Bhd Exempt An For Aia Bhd. 33,606,200 3.26 6. Cimb Group Nominees (Tempatan) Sdn Bhd Cimb Commerce Trustee Berhad For Kenanga Shariah Growth Opportunities Fund (50156 Tr01) 14,006,600 1.36 7. Hsbc Nominees (Asing) Sdn Bhd Morgan Stanley & Co. International Plc (Firm A/C) 10,558,100 1.02 8. Hsbc Nominees (Tempatan) Sdn Bhd Hsbc (M) Trustee Bhd For Manulife Investment Shariah Progress Fund 10,213,100 0.99 ANALYSIS OF SHAREHOLDINGS AS AT 29 MARCH 2024 Cont’d ANNUAL REPORT 2023 143 ITMAX SYSTEM BERHAD (Registration No. 200101008580 (544336-M)) LIST OF THIRTY (30) LARGEST SHAREHOLDERS cont’d No. Name No. of shares % 9. Hsbc Nominees (Tempatan) Sdn Bhd Hsbc (M) Trustee Bhd For Aham Select Opportunity Fund 10,179,100 0.99 10. Hsbc Nominees (Tempatan) Sdn Bhd Hsbc (M) Trustee Bhd For Pertubuhan Keselamatan Sosial (Aff Hwg6939-403) 7,627,000 0.74 11. Hsbc Nominees (Tempatan) Sdn Bhd Hsbc (M) Trustee Bhd For Principal Dali Equity Growth Fund 7,306,900 0.71 12. Citigroup Nominees (Tempatan) Sdn Bhd Great Eastern Life Assurance (Malaysia) Berhad (Lbf) 7,189,400 0.70 13. Citigroup Nominees (Tempatan) Sdn Bhd Great Eastern Life Assurance (Malaysia) Berhad (Lsf) 7,067,100 0.69 14. Maybank Nominees (Tempatan) Sdn Bhd National Trust Fund (Ifm Aham) (410195) 7,052,700 0.68 15. Citigroup Nominees (Tempatan) Sdn Bhd Great Eastern Life Assurance (Malaysia) Berhad (Leef) 6,088,400 0.59 16. Cartaban Nominees (Asing) Sdn Bhd The Bank Of New York Mellon For Greatlink Asean Growth Fund 5,789,000 0.56 17. Maybank Nominees (Tempatan) Sdn Bhd Maybank Trustees Berhad For Manulife Investment - Hw Flexi Fund (270519) 5,619,900 0.55 18. Amsec Nominees (Tempatan) Sdn Bhd Ambank (M) Berhad 5,518,900 0.54 19. Cimb Islamic Nominees (Tempatan) Sdn Bhd Cimb Islamic Trustee Berhad - Kenanga Syariah Growth Fund 5,211,400 0.51 20. Citigroup Nominees (Tempatan) Sdn Bhd Kumpulan Wang Persaraan (Diperbadankan) (Nomura) 5,000,000 0.48 21. Tokio Marine Life Insurance Malaysia Bhd As Beneficial Owner (Pf) 4,985,000 0.48 22. Maybank Nominees (Tempatan) Sdn Bhd National Trust Fund (Ifm Kenanga) (410196) 4,881,300 0.47 23. Cimb Group Nominees (Tempatan) Sdn Bhd Exempt An For Petroliam Nasional Berhad (Acf-Kenanga-Eq) 4,859,700 0.47 24. Citigroup Nominees (Tempatan) Sdn Bhd Great Eastern Life Assurance (Malaysia) Berhad (Dr) 4,818,500 0.47 25. Hsbc Nominees (Tempatan) Sdn Bhd Hsbc (M) Trustee Bhd For Aham Aiiman Growth Fund 4,565,000 0.44 26. Cimb Group Nominees (Tempatan) Sdn Bhd Exempt An For Petroliam Nasional Berhad (Acf-Affin-Eq) 4,550,700 0.44 27. Amanahraya Trustees Berhad Pmb Shariah Growth Fund 4,500,000 0.44 ANALYSIS OF SHAREHOLDINGS AS AT 29 MARCH 2024 Cont’d ANNUAL REPORT 2023 144 ITMAX SYSTEM BERHAD (Registration No. 200101008580 (544336-M)) LIST OF THIRTY (30) LARGEST SHAREHOLDERS cont’d No. Name No. of shares % 28. Cimb Group Nominees (Tempatan) Sdn Bhd Cimb Commerce Trustee Berhad For Kenanga Growth Opportunities Fund (50154 Tr01) 4,398,900 0.43 29. Tokio Marine Life Insurance Malaysia Bhd As Beneficial Owner (Tmef) 4,200,000 0.41 30. Hsbc Nominees (Tempatan) Sdn Bhd Hsbc (M) Trustee Bhd For Pertubuhan Keselamatan Sosial (Uob Amm6939-406)
from here we can see how strong is the 30 largest shareholders , mostly growth fund . look like the 6% DBT could be the angel investor that can bring ITMAX to another level .
ITMax announced that Southmax Sdn Bhd a 65% owned subsidiary had accepted the letter of appointment awarded by Segamat City Council to be the operator of smart parking for 7,637 on street parking spaces which are currently gazetted for a contract period of 15 years.
Both parties are to enter into a contract in respect of the smart parking operation, including all terms agreed upon among the parties.
The implementation of smart parking system will begin on 1 October 2024 with a revenue sharing at the rate of 70% (SSB) and 30% (MPS) for all parking collections including hourly parking, daily parking, monthly parking, season passes and temporary parking rental and parking compounds.
Revenue forecast. Our back of the envelop calculation takes into assumption of 40% utilisation rate for 10 hours (8am-6pm) which translates to 4 hours per day. With 6 days parking operations for 7.6k parking bays at RM0.60 per hour, this translates to RM440k revenue per month which equals to about RM5.3m per year. Based on the revenue sharing of 70%-30%, this would garner RM3.7m per annum for ITMAX. With 50% margin assumption this could lift its bottom line by ~RM1.8m per year. We understand that this award is only the first phase and there are 2-3k more parking spaces to be gazetted.
Expansion of its capability. The revenue generated from the smart parking system will provide additional recurring income for the group. We remain upbeat and this development strengthens our belief that this will propel its earnings to the next level. To note, MPS is the fourth smart parking job win in Johor for ITMAX after securing Majlis Bandaraya Iskandar Puteri (MBIP) in June 2024 ,Majlis Perbandaran Kulai (MPKu) in July 2024 and Majlis Daerah Tangkak (MDT) in early September 2024. We see significant opportunities for the group to expand this service to the other 12 councils. Assuming a total of 200k parking bays in the greater Johor area, with 6 days parking operations at 4 hours per day (40% utilisation rate) and RM0.60 per hour, this would garner average RM11.5m monthly or RM138.2m per year. With the same term of 70%- 30% revenue sharing and 50% margin, this could lift up the group bottom line by RM48m per year
Fifth smart parking job win ITMAX has accepted MPM’s LOA to be the smart parking operator for 8.6k street parking spaces for a period of 15 years. We remain upbeat and this development strengthens our belief that this will propel its earnings to the next level. This is the fifth job win relating to smart parking solution after securing MBIP in June 2024, MPKu in July 2024, MDT and MPS in Sept 2024. With this, we are confident that the group would be able to expand its reach to another 11 districts in Johor.
We opine that ITMAX deserves a premium valuation as it has unique direct exposure to the AI theme, especially at the application level. We believe that this home-grownsmart city integrated system and solution provider is a compelling case given its multiyear growth potential on the back of solid order and tender books.
ITMAX continues to build a solid orderbook, leveraging AI technologies and unique database systems for competitive advantage. The company sees multi-year growth potential across Kuala Lumpur, Johor, and Penang, driven by smart city solutions, AI-enhanced services, and expansion into new regions. The stock is recommended as a BUY with a target price of RM4.10, reflecting a projected upside of 13.5%.
from here we can see how strong is the 30 largest shareholders , mostly growth fund . look like the 6% DBT could be the angel investor that can bring ITMAX to another level .
FUND is cornering this stock , going to the moon .
this is a cornered stock,operator not in a hurry at all one by one the smart parking in johor councils kena sapu later spread to KL n penang too final target shud be rm5,then split 1 into 5 this is how the well connected get richer
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Joscylyn
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Posted by Joscylyn > 2 months ago | Report Abuse
ITMAX has strong contracts from the government. Safe and steady here