CGS-CIMB Research says the new contract would further expand Infomina’s order book by 32.2%, from RM401mil as at end-November 2022 to RM530mil, which should last till end-financial year 2027
PETALING JAYA: Infomina Bhd
’s RM125.1mil contract win for the provision of technology application and infrastructure operations for Siam Commercial Bank Public Co Ltd (SCB) will not only expand the company’s order book but set a stage for it to secure more contracts locally and abroad.
CGS-CIMB Research said the contract would further expand Infomina’s order book by 32.2%, from RM401mil as at end-November 2022 to RM530mil, which should last till end-financial year 2027 (FY27).
“This contract value will be recognised over a period of three years from Jan 1, 2023 to Dec 31, 2025, based on an assumption on a straight line basis. In addition, we view the profile of SCB as a leading bank in Thailand as well as in Asean as a testament to Infomina’s capabilities in the mainframe and information technology (IT) transformation space,” it added.
The research house, which is reiterating its “add” call on the stock, said its channel checks with Infomina reveal that the company is targeting to finalise more contracts with local and foreign customers in the next three to six months, with total contracts estimated at RM100mil to RM150mil.
This would contribute positively to the information and communications technology provider’s renewal and turnkey segments.
“We estimate Infomina’s tender book currently stands above RM380mil and we expect further expansion as it wins more contracts from new and existing customers in the IT transformation and mainframe space.
“However, the downside risks include non-renewal of Tier 1 value-added distributor status with Broadcom Software,” it said.
