PETALING JAYA: Hong Leong Investment Bank (HLIB) Research is positive about ITMax System Bhd
’s new venture in the development and deployment of smart city and smart integrated facilities and management solutions for townships and industrial parks.
“We believe that this home-grown smart-city integrated system and solution provider is a compelling case, given its multi-year growth potential on the back of solid order and tender books,” the research house said in a report yesterday.
ITMAX’s subsidiary Southmax Sdn Bhd recently signed a memorandum of understanding with Johor Corp’s unit Jland Group Sdn Bhd (JLG) to explore potential business opportunities in smart townships, park management and facilities management that incorporate innovative technologies for sustainable and efficient urban development, including those undertaken by JLG.
Subsequently, the parties shall engage in discussions with the aim of executing a joint-venture (JV) agreement between the parties or through their respective nominees and subsequently establishing a JV company (JVCo).
The scope of the memorandum will also include assessing opportunities and potential offerings and/or products related to the provision of public-space networked systems such as traffic management, video surveillance and street lighting systems to townships and parks.
According to JLG’s website, its real estate development activity currently comprises 34 industrial parks with over 16,800 acres of land and six townships with more than 9,300 acres of land.
Ibrahim Technopolis (iBTEC) in Sedenak, Johor is currently the main focus of JLG’s activity.
JLG said iBTEC aims to be a global benchmark for smart and sustainable townships and offers a game changing eco-system and effective digital platform for the new economy to flourish.
Covering 7,300 acres, iBTEC has a development period of 25 years and is setting out to play host to companies in sectors including data centres and cybersecurity, advanced electrical and electronics, robotics and artificial intelligence, medicine and pharmaceuticals, smart logistics and warehousing.
The development also intends to focus on knowledge-driven and sustainable development goals and environmental, social and governance initiatives.
HLIB Research added that the Sedenak Tech Park (STeP), which is located within iBTEC, will serve as a catalytic development that will position Sedenak as a hub propelling regional growth in data centres.
STeP comprises 22 data centre sites covering between five and 57 acres each, supported by sustainable energy sources, high availability of fibre-optic access and water supply.
To date, STeP has successfully attracted global data centre players including Yondr, Keppel DC, Bridge DC, Princeton Digital Group and more, added the research house.
HLIB Research said the company’s expansion into the sector is recognition of ITMAX’s capability and experience in integrated digital infrastructure.
The research house noted it sees great potential in ITMAX’s new venture based on JLG’s vast project portfolios, including iBTEC and STeP.
It has kept its forecasts on ITMAX unchanged and reiterated a “buy” call on the stock with a target price of RM2.90.
