PETALING JAYA: ITMax System Bhd
’s recent contract win is expected to lift its bottom line by RM1mil per year, with further growth potential of expanding its reach to another 14 districts in Johor, says Hong Leong Investment Bank (HLIB) Research.
ITMAX, a smart-city integrated system and solutions system provider, was appointed by Kulai Municipal Council (MPKu) as the smart-parking operator for Kulai area.
According to HLIB Research, revenue generated from the smart-parking system will provide additional recurring income for ITMAX.
“Based on the revenue sharing of 70% to 30%, this would garner RM1.9mil per annum for ITMAX. With a 50% margin assumption, this could lift its bottom line by about RM1mil per year.
“We understand this award is only the first phase and there are more than 10,000 parking spaces to be gazetted,” the research firm said in a report.
HLIB Research said its back-of-the-envelop calculation takes into assumption of 40% utilisation rate for 10 hours (8am-6pm), which translates to four hours per day.
With six days in operations for 3,900 parking bays at RM0.60 per hour, this translates to RM229,000 in revenue per month, which equals to about RM2.7mil per year.
“We remain upbeat and this development strengthens our belief this will propel its earnings to the next level.
“To note, MPKu is the second smart-parking job win in Johor for ITMAX after securing Majlis Bandaraya Iskandar Puteri in June 2024.”
It expects opportunities for the group to expand the service to other 14 councils in the state.
