Latest news with #ITMAX
New Straits Times
4 days ago
- Automotive
- 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.
Malay Mail
07-08-2025
- Business
- Malay Mail
ITMAX secures 10-year smart parking contract from Shah Alam City Council
KUALA LUMPUR, Aug 7 — ITMAX System Bhd, via its 70 per cent-owned subsidiary Selmax Sdn Bhd, has secured a 10-year contract from the Shah Alam City Council (MBSA) to manage the Selangor Intelligent Parking (SIP) system. In a filing with Bursa Malaysia today, ITMAX said the contract includes an option for a five-year extension, subject to assessments by MBSA and SIP system provider Rantaian Mesra Sdn Bhd (RMSB), a wholly owned unit of Menteri Besar Selangor Inc (MBI). Selmax, which accepted the revised letter of appointment (LOA) from MBSA on Aug 1, 2025, referencing the original appointment dated July 9, 2025, will also manage parking compounds in areas under the jurisdiction of MBSA. All three parties, Selmax, MBSA and RMSB, will enter into a tripartite agreement to formalise the arrangement. 'The LOAs are expected to contribute positively towards the earnings and net assets per share of the company over the period until the expiry of the contract period,' ITMAX said. The smart parking operator added that all parking collections would be distributed based on the revenue-sharing arrangement comprising 10 per cent for RMSB, MBSA (40 per cent) and Selmax (50 per cent). — Bernama
BusinessToday
01-08-2025
- Automotive
- BusinessToday
ITMAX Strikes Profit Sharing Parking Deal With MPSJ
ITMAX System Bhd has secured another smart parking contract through its subsidiary Selmax Sdn Bhd to operate the Selangor Intelligent Parking (SIP) system for the Subang Jaya City Council (MBSJ). Under the 10-year agreement, Selmax will manage all gazetted parking spaces within MBSJ's jurisdiction. The deal includes a revenue-sharing model, with Selmax entitled to 50% of parking-related collections and an optional five-year extension. 'We are honoured to be appointed as the SIP operator for MBSJ, marking ITMAX's strategic entry into Selangor,' said William Tan Wei Lun, Managing Director and CEO of ITMAX. 'This aligns with Selangor's Smart City agenda and reflects our commitment to building connected, efficient and sustainable urban ecosystems.' Tan said the partnership aims to enhance urban mobility and public safety while improving the overall quality of life through advanced smart city technologies. Related
New Straits Times
31-07-2025
- Automotive
- New Straits Times
ITMAX Secures RM145mil smart traffic contract from JB City Council
KUALA LUMPUR: ITMAX System Bhd, through subsidiary Southmax Sdn Bhd, has secured a RM145 million contract from the Johor Bahru City Council (MBJB) to provide traffic management services. In a Bursa Malaysia filing today, the company said it had received and accepted the letter of acceptance dated July 25, 2025, for the contract, which spans 240 months from Aug 1, 2025, to July 31, 2045. Under the terms of the contract, ITMAX will be responsible for the deployment and maintenance of the smart traffic light system across the Johor Bahru area. Its managing director and chief executive officer William Tan Wei Lun said the company is pleased to secure a second contract from MBJB, further strengthening its smart city presence in Johor Bahru. He added that the award highlights the increasing trust local councils have in ITMAX's AI-driven infrastructure solutions and reinforces the company's role as a reliable long-term partner in Johor's journey toward smart city development. "Through the implementation of our smart traffic light system, we aim to not only enhance traffic efficiency across the city but also contribute towards reducing carbon emissions and advancing Johor State's broader environmental, social and governance objectives," he said.
The Star
11-06-2025
- Business
- The Star
ITMAX new AI growth pillar a positive for company
PETALING JAYA: ITMax System Bhd 's latest artificial intelligence (AI) initiative, the 'Digital Twin' project, could generate a potential revenue of RM15mil to RM20mil per year. The 'Digital Twin' project involves the creation of a virtual 3D replica of Kuala Lumpur complete with buildings, road infrastructure and even slope analysis. This new growth pillar leverages ITMAX's data collection strengths, said Maybank Investment Bank Research (Maybank IB). The project will enable real-time simulation by authorities to enhance urban planning efficiency and is expected to be completed in December 2025, with monetisation targeted for financial year 2026 (FY26). After its meeting with ITMAX, Maybank IB came away feeling positive on the prospects of its core CCTV offering and its latest AI-enabled growth pillar. The research house maintains its FY25-FY27 earnings forecast. It retains its 'buy' rating on the stock with a target price of RM4.50. The shares closed at RM3.71 at the time of writing. The risk factors cited include the loss of subsisting contracts with the Kuala Lumpur City Hall (DBKL) to another competitor. It also includes higher-than-expected cost drag related to its expansionary initiatives, and a significant reduction in DBKL's operating budget that may impede continuity of existing contracts, as well as potential variation orders. However, ITMAX remains the research house's top Malaysian software pick for its robust growth offering and leading position as Malaysia's go-to smart city player. Having thus far secured contracts for 1,640 CCTVs across four Greater Johor Baru (GJB) districts, Maybank IB understands that Johor has adopted a single supplier policy for its smart city infra. This implies a 'when' rather than 'if' scenario for ITMAX securing CCTV contracts for the remaining 12 districts in the state. ITMAX is already in active discussions with Pengerang, Batu Pahat and Muar. The four GJB districts are also looking to increase CCTV installations ahead of a ramp-up in the Johor-Singapore Special Economic Zone economic activity. Maybank IB currently imputes a modest 2,000 CCTVs in Johor in FY25/FY26, but based on its sensitivity analysis, every additional 1,000 CCTV units installed in Johor could uplift ITMAX's core earnings by about 2.4% to 3.6% for FY25-FY27. Outside Johor, ITMAX'S CCTV prospects appear equally bright. DBKL has mandated for Kuala Lumpur to have 20,000 CCTVs by end-2028, implying a minimum 10,000 additional CCTVs over the next three years, which has been included in its forecasts.
