PETALING JAYA: ITMax System Bhd
’s earnings momentum is expected to pick up in the second half of the year as more closed-circuit TV (CCTV) units are added to its network in Johor, according to Maybank Investment Bank Research (Maybank IB Research) .
The research house added that installation work for its other Johor-related CCTV contracts remains on track.
“Our forecasts have imputed for about 1,300 CCTV installations in Johor by end of the fourth quarter 2024 (4Q24). The margin-dilutive Segamat Specialist Hospital (SSH) project is also expected to be completed by December this year.
“As of end-2Q24, ITMAX’s unbilled order book stood at about RM1.5bil which is expected to see it through to 2039, while its tender book stood at around RM300mil to RM400mil, “ the research house noted.
The company’s robust supply, installation and maintenance segment growth in 2Q24 was underpinned by the ongoing mechanical and electrical services work for the SSH project, which was around 70% completed as of end-2Q24, and contributions from Kuala Lumpur City Hall’s (DBKL) contract for street lighting awarded in 1Q24.
Meanwhile, the digital infrastructure solutions (DIS) segment saw maiden contribution from about 300 CCTVs installed for Johor Baru City Council in the same quarter, alongside stable revenue generation from its existing subscription-based DBKL and Royal Malaysia Police CCTV networks.
