INFOM 0265 INFOMINA BERHAD a gem worth keeping an eye on with strong growth visibility
Infomina Bhd, an IT solution provider, has been relentless in its share price since its listing on the ACE Market on Nov 25 last year.
The counter surged some 260% to end the year at RM1.44 on Dec 30, 2022 versus its IPO price of 40 sen.
It didn’t stop there.
Infomina continued its upward trajectory hitting its 52-week high of RM1.75 early April.
However, the amazing run tapered off a bit to hover around RM1.60 currently.
Will the counter be able to keep going?
Looking at the company’s performance, it appears like a solid company.
It posted a fresh high in its 3QFY223 revenue mainly boosted by upward contract rate revisions to existing customers, additional recognition of overage fee due to higher-than-expected usage and consumption by customers as well as new contracts.
Notably, 9MFY23 core net profit has already exceeded the record-high net profit in FY22 by 90%.
Apart from the robust performance, Infomina has been bagged 3 contracts just this year alone.
In February, Infomina's wholly-owned subsidiary, PT Infomina Solution Indonesia secured a maintenance and support contract worth RM14.5 million from PT Bank Maybank Indonesia TBK.
The contract added to the company's outstanding orderbook which has increased to over RM500 million.
Subsequently, Infomina clinched a RM23.9 million contract late March from the Philippine National Bank for the provision of technology application and infrastructure operations, maintenance and support services.
About a week later, Infomina was appointed by the Companies Commission of Malaysia (SSM) to provide a platform for the public to search, extract and purchase data on companies and businesses registered with SSM.
The company did not disclose the contract value, which will last for 6 years.
However, it would charge a service fee, which will be based on the actual consumption of the platform.
Despite the strong performance in share price, financials and job replenishments, AmInvest has maintained its hold recommendation on Infomina but with a higher fair value of RM1.82 from RM1.51.
This is based on raised FY24 EPS and an unchanged FY24 PE of 25x, in line with its closest industry peers' average forward.
Still, the contract wins are a testament to Infomina’s ability in the mainframe and IT transformation space and a strong demonstration of the close working ties of Infomina
and Broadcom, especially in its partner regions.
Informina is a sole Tier 1 value added distributor for Broadcom Mainframe Software in 8 countries (Malaysia, Singapore, Thailand, Indonesia, the Philippines, China, Hong Kong and Taiwan) currently.
It should benefit from rising demand for mainframe services globally and won’t be surprising if investors continue to like the counter for its strong growth.
#INFOM
https://xifu.my/OpinionsComment.aspx?BID=B01370716P0AEAC1
The Real Cost of Art Therapy in SG
26 minutes ago
