ITMAX expands smart city reach to East Malaysia

PETALING JAYA: ITMAX System Bhd’s next growth frontier could be East Malaysia after establishing a firm presence in Kuala Lumpur, Johor and Penang.

Maybank Investment Bank Research (Maybank IB) stated that ITMAX’s contract momentum is growing, with new projects in Penang and Johor.

The research house expects further wins later this year in Johor and potentially Sabah.

In Kota Kinabalu, the goal is to install 1,500 artificial intelligence (AI) closed-circuit televisions (CCTVs) by the end of 2025 to enhance security, according to the mayor.

Maybank IB believes ITMAX stands a good chance of securing the tender given its track record.

It anticipates further contract wins in the second half of 2025 (2H25).

Maybank IB projected higher revenue in financial year 2026 (FY26)/FY27, although it will be offset by higher operational expenditure and capital expenditure, primarily front-loaded in FY25.

Its FY25 to FY26 earnings forecasts have been revised to negative 7% and 1%, respectively, while FY27 remains unchanged.

It maintained its “buy” call on the stock with a revised target price of RM4.50 per share following the earnings revision.

ITMAX remains its top software pick due to its dominant position as Malaysia’s leading smart city solutions provider.

Last week, ITMAX secured two additional smart city contracts in Penang and Johor.

The first contract in Penang involves the installation and upgrade of about 450 CCTVs, with a total contract value of RM26.6mil over eight years.

The second in Johor was for the provision of smart parking services – its seventh smart parking contract secured in the state.

By end-FY25, ITMAX would have installed or upgraded over 1,000 CCTVs in Penang, with an additional 1,100 units across both the island and mainland due for upgrades in the near future.

For smart parking in Johor, it currently manages 77,389 outdoor parking bays and could secure additional bays in 2H25.