HLIB has maintained its BUY call on ITMAX System Bhd with an unchanged target price of RM6.08, implying 38.2% upside, after the technology group posted record quarterly earnings driven by its expanding CCTV business.
HLIB said 1H26 core earnings of RM55 million were within expectations, accounting for 46% of HLIB’s full-year forecast.
ITMAX’s 2Q26 core profit rose 16.7% year-on-year to RM30.5 million, while revenue grew 28.3% as Digital Services Infrastructure revenue jumped 42.3%. HLIB said the stronger performance was supported by higher CCTV deployments in Johor and Kuala Lumpur, alongside contributions from smart parking.
The full-quarter contribution from the 5,000-CCTV rollout for Kuala Lumpur City Hall lifted the group’s high-margin CCTV business and pushed its earnings to a record level. HLIB expects quarterly core profit of around RM30 million to become the new base in the coming quarters, provided its supply, installation and maintenance business maintains its current pace.
Further growth is expected in the second half, with full contributions from MBJB smart parking, which began in May. Looking into FY27, HLIB sees earnings supported by another 2,000 CCTVs in Johor Bahru, the Kota Kinabalu smart city project and PERKESO’s employment portal.
HLIB said ITMAX’s long-term growth runway remains supported by Malaysia’s smart city and digitalisation initiatives, with further potential to monetise its infrastructure through digital twins, traffic assessments and analytics.
As of 11.02 am, the stock price gained 0.68% to RM4.43.
