PETALING JAYA: Infomina Bhd
’s expanded partnership with US technology giant Broadcom Inc is expected to unlock new growth opportunities and strengthen its position as a regional enterprise software solutions provider, according to Kenanga Research.
The research house is maintaining its “outperform” call on the technology company with an unchanged target price (TP) of RM2.40, implying a potential upside of 32.6% from its last traded price of RM1.81.
Kenanga Research said Infomina’s five-year appointment as an aggregator to distribute and support Broadcom’s Agile Operations Division (AOD) software portfolio across 13 Asia-Pacific markets would broaden its addressable market, enhance cross-selling opportunities and provide a potential new recurring revenue stream.
Effective Nov 1, 2026, until Nov 2, 2031, the appointment covers Malaysia, Thailand, the Philippines, Singapore, Taiwan, Hong Kong, China, Indonesia, Australia, New Zealand, South Korea, Sri Lanka and India.
The new mandate complements Infomina’s existing distribution business for Broadcom’s Mainframe Software Division (MSD), extending its offerings beyond traditional mainframe technologies into enterprise automation, network operations and value stream management.
“Together, MSD and AOD provide a more comprehensive suite of enterprise software solutions spanning mainframe, distributed and cloud environments,” Kenanga Research said.
The research house believes the expanded portfolio will allow Infomina to leverage its existing technical expertise and customer relationships to address broader enterprise information technology requirements while penetrating new customer segments.
More importantly, the five-year tenure could enhance recurring revenue visibility through software renewals and support services, providing an additional medium-term earnings growth catalyst.
However, the research house cautioned that the financial contribution from the new appointment remains unquantified, pending greater clarity on Broadcom’s existing AOD revenue base across the 13 markets, distribution margins and customer adoption rates.
As such, it is leaving its financial year 2027 (FY27) and FY28 earnings forecasts unchanged.
Kenanga Research projects Infomina’s revenue to grow from RM278mil in FY26 to RM330mil in FY27 and RM411mil in FY28.
Net profit is forecast to rise from RM35mil to RM46mil and RM58mil over the same period. Its investment case is underpinned by Infomina’s positioning in the hybrid mainframe-cloud modernisation upcycle, its expanding presence in Japan, which offers an estimated annual addressable market of RM80mil to RM100mil, and accelerating artificial intelligence adoption across Asean and North Asia.
Kenanga Research’s RM2.40 TP is based on 25 times FY28 forecast earnings, based on the three-year historical blended average valuation of selected listed peers.
It said Infomina was well positioned to benefit from the growing demand for hybrid mainframe and cloud modernisation, supported by its track record in mission-critical environments and comprehensive “plan-build-operate” service offering.
Its expanding footprint in Japan also offers significant growth potential, with an estimated annual addressable market of RM80mil to RM100mil, while rising artificial intelligence adoption across Asean and North Asia provides an additional growth avenue.
