ITMAX surges with Selangor wins, Johor strength — Rakuten Trade stays bullish
The valuation is based on a discounted cash flow model with an 8.2 per cent weighted average cost of capital and a 3 per cent terminal growth rate.
The broking projects core net earnings of RM85.1 million for the financial year 2025 (FY2025) and RM101.4 million for FY2026, underpinned by what it calls "one of the most compelling urban digitalisation plays in Malaysia."
Key growth drivers include rapid contract wins in Selangor, entrenched leadership in Johor, recurring income streams from long-term concessions, and a record RM1.598 billion unbilled order book, backed by a net cash balance sheet.
ITMAX has entered Selangor's smart city landscape in force, securing two landmark contracts for the Selangor Intelligent Parking (SIP) system from Subang Jaya City Council (MBSJ) and Shah Alam City Council (MBSA) – marking its first major foothold in Malaysia's most urbanised state.
The MBSJ award covers 73,000 gazetted bays (33,000 already operational, 40,000 undergoing upgrades) with AI-enabled enforcement using Mobile Patrol LPR and CCTV. Shortly after, the MBSA win added 80,000 bays (50,000 operational) to ITMAX's portfolio. In total, the company now manages about 100,000 parking bays in Selangor, far surpassing the 60,000 it operates in Johor.
Through its 70 per cent-owned subsidiary Selmax, ITMAX will enjoy a 50 per cent revenue share from parking and compound collections while providing infrastructure, maintenance, and enforcement manpower. With Phase 1 of the SIP covering MBSJ, MBSA, MPS, and MBPJ – and the latter two councils yet to appoint operators – ITMAX is well-positioned to capture further contracts. Phase 2, slated for after end-2025, could expand coverage to Selangor's total addressable market of 330,000–400,000 bays.
Rakuten Trade notes that this parking network could form the backbone for broader Smart City integration, including video surveillance and centralised urban management systems – creating multi-layered recurring revenue streams.
In Johor, ITMAX's proven model has driven strong results – a recent rollout in Kulai boosted council parking revenues by 200 per cent, reinforcing its leadership across seven councils. The latest win, a RM145 million, 20-year smart traffic light system concession from Johor Bahru City Council (MBJB), will modernise 230 junctions, with billing expected from the fourth quarter of FY2025 through the first quarter of FY2026.
Johor Bahru's steady urban expansion is projected to increase junctions by about 5 per cent annually, while CCTV demand could surge from the current 500 units to around 34,000, highlighting significant untapped growth potential.
With high-value contract momentum in Selangor, entrenched market share in Johor, and a scalable technology platform aligned with state smart city agendas, ITMAX is positioned for long-term growth. Rakuten Trade said the combination of policy-backed concessions, a record order book, and a strong cash position makes ITMAX a standout in Malaysia's infrastructure digitalisation sector.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malay Mail
15 hours ago
- Malay Mail
Selangor's smart parking plan: How it stacks up against global models
PETALING JAYA, Aug 14 — Selangor's upcoming Selangor Intelligent Parking (SIP) system will centralise on-street parking management in four local councils — Petaling Jaya (MBPJ), Subang Jaya (MBSJ), Shah Alam (MBSA) and Selayang (MPS) — under a single integrated model. Under the arrangement, local councils will set parking policies and rates, while Menteri Besar Incorporated (MBI) subsidiary Rantaian Mesra Sdn Bhd will coordinate the system. A private concessionaire will operate the system, including fee collection, while enforcement will remain under council authority with operational support from the concessionaire. State Local Government and Tourism Committee chairman Datuk Ng Suee Lim said the move will 'streamline and centralise' parking services, improve efficiency and boost collection rates from about 30 per cent to 60 per cent. The concessionaire is expected to invest around RM200 million in infrastructure, including about 1,800 CCTV cameras across the participating councils. Parking rates — currently between RM0.40 and RM0.60 per hour — will remain unchanged for now. Revenue will be shared between the concessionaire (50 per cent), the local councils (40 per cent) and MBI (10 per cent). However, some councillors and residents have voiced concerns over the revenue split and the expanded role of a private operator, warning of reduced oversight and possible long-term impacts on council income. While the SIP framework is still being finalised, similar smart parking models have been implemented worldwide. Here's how other countries manage such systems — and who controls the profits and data. Taiwan In Taipei, Tainan and Kaohsiung, parking meters are connected to the city's IoT network, feeding real-time availability and usage data to mobile apps. Drivers are charged by the minute rather than fixed time blocks, encouraging vehicle turnover in busy areas. Data is owned and regulated by local governments, with all revenue going into municipal budgets. Enforcement is carried out by city officers, not private firms, ensuring transparency in fines and collections. Estonia Known for its advanced e-governance, Estonia integrates parking into its X-Road national data exchange platform, enabling seamless communication between municipal authorities, police and transport agencies. While private vendors may supply meters and apps, policy, enforcement and income remain under local authority control. Parking fees are dynamically adjusted based on demand, with real-time price displays. South Korea In Seoul, Incheon and Bucheon, smart parking systems are linked to citywide traffic management platforms. Mobile apps locate and reserve spaces and connect unused private parking — such as in office buildings — to the public network. Technology providers are often private, but oversight, fee setting and revenue collection remain public functions. Some cities use blockchain to track payments and curb fraud. Singapore Singapore's app, developed by the Urban Redevelopment Authority (URA) and Housing & Development Board (HDB), is a model of user-friendly public sector innovation. Drivers pay by the minute, extend sessions remotely and receive expiry reminders. While tech contractors assist in development, the government controls enforcement and retains all revenue. United Kingdom In cities such as London and Birmingham, councils hire private firms like NSL or APCOA to provide wardens, process payments and maintain equipment. These companies are paid service fees rather than a share of collections. Penalty notices are issued under council authority, and parking income flows back to public budgets. Australia Sydney, Melbourne and Brisbane use smart meters and app-based payments, often from international vendors like Parkeon or Duncan Solutions. Councils retain full control of pricing, rules and enforcement, using vendor systems solely as operational tools rather than revenue-sharing arrangements. United States Chicago's 2008 decision to lease parking meters to a private consortium for 75 years is widely regarded as a cautionary tale. The city received an upfront payment but lost control over pricing and billions in future revenue. Rates rose sharply, and the contract has proven difficult to renegotiate — a scenario many cities now avoid. How Selangor's SIP compares Unlike most models where public agencies retain control over both revenue and enforcement, Selangor's SIP proposes a significant private role in fee collection and operational support for enforcement. While centralisation could make parking more convenient for motorists and improve compliance, critics warn it may weaken local council oversight and divert funds from public services. Experiences in Taiwan, Estonia and Singapore show that efficiency and transparency can be achieved without relinquishing control of data, enforcement and revenue to private operators. As Selangor finalises its agreement, the decision will be whether SIP becomes a publicly accountable upgrade — or mirrors global cases where privatisation brought long-term trade-offs.
The Star
16 hours ago
- The Star
Seri Kembangan market traders rue loss of income
Traders at the temporary market site in Jalan SK6/1 complain of reduced business. — Photos: SAMUEL ONG/The Star AFTER being relocated to a temporary site over two years ago, traders of Pasar Awam SK10 (SK10 Public Market) in Seri Kembangan, Selangor, are struggling to make ends meet. Herb seller Ooi Kim Hock, 53, told StarMetro that customers kept away from their temporary trading site in Jalan SK6/1 due to insufficient parking space. 'My customers often have to park by the roadside and then get fined by Subang Jaya City Council (MBSJ) enforcement officers. Ooi says his business has dropped by 70%. 'This has caused my business to drop by about 70% compared to when I was trading at the old market,' he said when met at the temporary site, located about 1.5km away from the old market at Jalan SK10/3. Ooi also claimed that he had to pay higher rental at the new site, further burdening him financially. Another trader, identified only as Yew Lian, said some stalls had gone out of business after the move to the temporary site. 'Four to five stalls shut down last year. 'I heard that four or five more are on the brink of shutting down. 'We have lost a lot of income due to the lack of parking space. 'My daily income is only about RM300, which is a 70% drop from what I used to make at the old market,' she said, adding that she sold poultry from 6am to 3pm daily. It was previously reported that traders were relocated to the temporary site in April 2023 to allow the old market to be demolished and a new one to be built under a three-year project. A visit by StarMetro on Tuesday found the old market site having overgrown grass and rubbish strewn around a partially torn-down structure. There was no construction work seen at the site. Pasar Awam SK10 in Jalan SK10/3 in Seri Kembangan, Selangor, is still being cordoned off without any redevelopment over the last two years. A May 26 StarMetro article titled 'Markets potential for tourism as cultural landmarks', reported that 10 architectural firms had won prizes in a design competition held for SK10 Public Market that was set for a RM12mil redevelopment. The competition was a joint effort between MBSJ and Malaysian Institute of Architects, with the winning firms to be appointed as consultants for the upgrading project. The Federation of Association of Serdang general secretary Chuah Hooi Hong called for MBSJ to provide a clear schedule on the market upgrade. 'Months have passed since the results of the design competition were announced. 'When will the tender process start and how long will it take to finish the upgrade? 'The traders cannot wait any longer, they need to survive,' he said. MBSJ had not responded to queries regarding the matter as at press time.
New Straits Times
3 days ago
- New Straits Times
ITMAX surges with Selangor wins, Johor strength — Rakuten Trade stays bullish
KUALA LUMPUR: Rakuten Trade Sdn Bhd is maintaining its BUY call on ITMAX System Bhd with a target price of RM5.01, citing the company's rapid market expansion, robust order book, and solid earnings visibility as catalysts for sustained growth. The valuation is based on a discounted cash flow model with an 8.2 per cent weighted average cost of capital and a 3 per cent terminal growth rate. The broking projects core net earnings of RM85.1 million for the financial year 2025 (FY2025) and RM101.4 million for FY2026, underpinned by what it calls "one of the most compelling urban digitalisation plays in Malaysia." Key growth drivers include rapid contract wins in Selangor, entrenched leadership in Johor, recurring income streams from long-term concessions, and a record RM1.598 billion unbilled order book, backed by a net cash balance sheet. ITMAX has entered Selangor's smart city landscape in force, securing two landmark contracts for the Selangor Intelligent Parking (SIP) system from Subang Jaya City Council (MBSJ) and Shah Alam City Council (MBSA) – marking its first major foothold in Malaysia's most urbanised state. The MBSJ award covers 73,000 gazetted bays (33,000 already operational, 40,000 undergoing upgrades) with AI-enabled enforcement using Mobile Patrol LPR and CCTV. Shortly after, the MBSA win added 80,000 bays (50,000 operational) to ITMAX's portfolio. In total, the company now manages about 100,000 parking bays in Selangor, far surpassing the 60,000 it operates in Johor. Through its 70 per cent-owned subsidiary Selmax, ITMAX will enjoy a 50 per cent revenue share from parking and compound collections while providing infrastructure, maintenance, and enforcement manpower. With Phase 1 of the SIP covering MBSJ, MBSA, MPS, and MBPJ – and the latter two councils yet to appoint operators – ITMAX is well-positioned to capture further contracts. Phase 2, slated for after end-2025, could expand coverage to Selangor's total addressable market of 330,000–400,000 bays. Rakuten Trade notes that this parking network could form the backbone for broader Smart City integration, including video surveillance and centralised urban management systems – creating multi-layered recurring revenue streams. In Johor, ITMAX's proven model has driven strong results – a recent rollout in Kulai boosted council parking revenues by 200 per cent, reinforcing its leadership across seven councils. The latest win, a RM145 million, 20-year smart traffic light system concession from Johor Bahru City Council (MBJB), will modernise 230 junctions, with billing expected from the fourth quarter of FY2025 through the first quarter of FY2026. Johor Bahru's steady urban expansion is projected to increase junctions by about 5 per cent annually, while CCTV demand could surge from the current 500 units to around 34,000, highlighting significant untapped growth potential. With high-value contract momentum in Selangor, entrenched market share in Johor, and a scalable technology platform aligned with state smart city agendas, ITMAX is positioned for long-term growth. Rakuten Trade said the combination of policy-backed concessions, a record order book, and a strong cash position makes ITMAX a standout in Malaysia's infrastructure digitalisation sector.
