PETALING JAYA: ITMax System Bhd
’s latest artificial intelligence (AI) initiative, the “Digital Twin” project, could generate a potential revenue of RM15mil to RM20mil per year.
The “Digital Twin” project involves the creation of a virtual 3D replica of Kuala Lumpur complete with buildings, road infrastructure and even slope analysis.
This new growth pillar leverages ITMAX’s data collection strengths, said Maybank Investment Bank Research (Maybank IB).
The project will enable real-time simulation by authorities to enhance urban planning efficiency and is expected to be completed in December 2025, with monetisation targeted for financial year 2026 (FY26).
After its meeting with ITMAX, Maybank IB came away feeling positive on the prospects of its core CCTV offering and its latest AI-enabled growth pillar.
The research house maintains its FY25-FY27 earnings forecast. It retains its “buy” rating on the stock with a target price of RM4.50. The shares closed at RM3.71 at the time of writing.
The risk factors cited include the loss of subsisting contracts with the Kuala Lumpur City Hall (DBKL) to another competitor.
It also includes higher-than-expected cost drag related to its expansionary initiatives, and a significant reduction in DBKL’s operating budget that may impede continuity of existing contracts, as well as potential variation orders.
However, ITMAX remains the research house’s top Malaysian software pick for its robust growth offering and leading position as Malaysia’s go-to smart city player.
Having thus far secured contracts for 1,640 CCTVs across four Greater Johor Baru (GJB) districts, Maybank IB understands that Johor has adopted a single supplier policy for its smart city infra.
This implies a “when” rather than “if” scenario for ITMAX securing CCTV contracts for the remaining 12 districts in the state.
ITMAX is already in active discussions with Pengerang, Batu Pahat and Muar.
The four GJB districts are also looking to increase CCTV installations ahead of a ramp-up in the Johor-Singapore Special Economic Zone economic activity.
Maybank IB currently imputes a modest 2,000 CCTVs in Johor in FY25/FY26, but based on its sensitivity analysis, every additional 1,000 CCTV units installed in Johor could uplift ITMAX’s core earnings by about 2.4% to 3.6% for FY25-FY27.
Outside Johor, ITMAX’S CCTV prospects appear equally bright. DBKL has mandated for Kuala Lumpur to have 20,000 CCTVs by end-2028, implying a minimum 10,000 additional CCTVs over the next three years, which has been included in its forecasts.
