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Infomina's IT contract with Maybank Indonesia is positive, says CGS-CIMB Research

KUALA LUMPUR: CGS-CIMB Research positively views Infomina Bhd's new contract with Maybank Indonesia, as it is the company's first contract in Indonesia.

The firm believes this is a testament to Infomina's ability in the mainframe and information and technology (IT) transformation space and a strong demonstration of the close working ties of Infomina and Broadcom, especially in its partner regions.

"In our view, this is another feather in Infomina's cap (in terms of reputable clientele), given the profile of Maybank as a leading banking group in Southeast Asia.

"We also believe that it would further strengthen opportunities for Infomina to obtain more contracts from Maybank, which has operations across various countries," it said in a note.

Infomina recently obtained a letter of confirmation to provide a contract worth US$3.3 million (RM14.4 million) from Maybank Indonesia.

This was to provide technology applications and infrastructure operations, maintenance and support services over a five-year tenure from November 30, 2022, to November 27, 2027.

In terms of earnings contribution, this RM14.4 million first new contract has already been accounted for in the firm's forecast of RM275 million contract wins in the financial year 2023 (FY23)-FY25.

"We estimate that Infomina's current orderbook stands at above RM400 million for the next three years.

"We gather from Infomina that it is still targeting to obtain more contracts from local and overseas customers in the next six months.

"We estimate that Infomina's tenderbook currently stands above RM550 million, and we expect it to grow further as Infomina's existing and potential customers expand their businesses in the IT transformation and mainframe space," it said.

The firm maintained its 'Add' call on the stock with a target price of RM1.70.

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