ITMAX System Bhd remains a BUY for Hong Leong Investment Bank Bhd (HLIB), which raised its target price to RM6.08 from RM6.00 after the company secured a surprise RM186 million contract from Pertubuhan Keselamatan Sosial (PERKESO) to develop an employment portal.
HLIB said the five-year contract runs from 1 September 2026 to 31 August 2031 and involves replacing the existing MYFutureJobs platform with an upgraded system incorporating artificial intelligence features such as intelligent job matching, candidate shortlisting, career pathway analysis and a 24/7 AI assistant.
The research house described the win as unexpected given that the project falls outside ITMAX’s traditional smart-city solutions. It believes the company secured the contract partly because of PERKESO’s move towards a local technology provider and ITMAX’s track record in developing and training its own AI models.
Unlike ITMAX’s CCTV contracts, where the company retains infrastructure ownership and earns recurring subscription income, the employment portal will be recognised in two phases. Around 80% of the contract value is expected to be recognised during the first three years of system development, followed by maintenance services over the next two years.
HLIB raised its FY26 and FY27 earnings forecasts by 14.9% and 13% respectively after factoring in the project, with overall margins expected to be broadly in line with its CCTV business.
The research house maintained its call and lifted its target price based on a DCF valuation. It also sees further long-term potential from Malaysia’s smart-city rollout, noting ITMAX could increasingly monetise its infrastructure through digital twins, traffic analytics and other urban applications.
