PETALING JAYA: Infomina Bhd
is well positioned to benefit from the accelerating adoption of hybrid mainframe cloud systems across Asean and North Asia, analysts say.
A hybrid mainframe cloud blends on-premises mainframes with public/private cloud services, letting organisations keep core systems secure.
According to Kenanga Research, Infomina will be able to leverage its track record of mission-critical delivery and mainframe specialisation to act as a go-to execution partner for modernisation and hybrid integration.
“Its broad partner ecosystem anchored by the likes of Broadcom, Hitachi Vantara, IBM, Software AG, Precisely Software LLC, Hewlett Packard Enterprise, H3C and Oracle, further enhances its end-to-end capability in integration, application programming interface management and data enrichment, supporting larger and higher-value engagements,” the research house said.
The research house added that, with a historically stable revenue base, Infomina’s earnings quality and cash flow visibility have improved structurally as the business continues to tilt towards recurring, higher-margin renewals, lifting group gross margin from 20.8% to 30.4%.
The group’s renewal mix stood at 49.7% in its financial year ending May 31, 2022 (FY22), rising to 87% in FY25
Furthermore, the regional technology solutions provider is seeing an early inflection in Japan, supported by the conversion of Broadcom mainframe users to renew and shift maintenance coverage to Infomina, with management guiding for a meaningful step-up in Japan’s contribution through FY26 to FY27.
With a large installed base and an estimated RM80mil to RM100mil addressable customer spending annually, early wins suggest rising penetration potential and a new growth leg as execution scales up, Kenanga Research said.
The research initiated coverage of Infomina with an “outperform” rating and a target price of RM1.90 per share.
The research house, however, said risks to its call include non-renewal or termination of the regional partner agreement with Broadcom; an unfavourable outcome from the Bank of Philippine Islands litigation in the Philippines, and slower-than-expected traction and scalability of the group’s artificial intelligence platforms, which could delay meaningful revenue and earnings contribution.
