ITMAX’s latest smart parking contract award effectively completes its impressive sweep of northwestern Johor districts (Muar, Tangkak and Segamat) within the span of a month.
Maybank Investment Bank said it had tweaked its FY24-26E earnings by +1%/+2%/+2% to account for higher smart parking contribution.
Consequently raised the target price for the stock to RM4.40 (+15sen) with a BUY call based on the compelling prospects as Malaysia’s leading “smart city” player.
ITMAX announced on 7 Oct that its 65%-subsidiary, Southmax S/B (SSB), has received a Letter of Award (LOA) by Muar District Council (MPM), appointing it as the smart parking operator for 8,640 street parking bays gazetted across the district.
The LOA is for 15 years, commencing on 1 Oct 2024 to 30 Sep 2039.
The number of parking bays to be administered by SSB in Muar is not finite and will increase upon future expansion works. ITMAX now administers >57k Johor parking bays. The MPM LOA represents ITMAX’s fifth smart parking contract in Johor.
Including Muar, ITMAX currently administers 57,389 street parking bays across the state. Collectively, all the bays could generate MYR12.1m/29.5m in turnover for ITMAX (after revenue-sharing with the council and assuming blended utilisation rate of 40%) in FY24E/25E.
Albeit the lowest hanging fruit in ITMAX’s suite of “smart city” products, outdoor parking administration offers district councils strong revenue generation potential whilst minimising overhead costs via an opex-light model.
ITMAX expects to install all Greater JB CCTVs by YEHaving secured smart parking contracts (and crucially, an active working relationship to demonstrate its capabilities) with Johor’s trio of northwestern district councils, the house expects CCTV contracts to follow suit from these districts in the future.
To-date, we understand that ITMAX has installed >c.1,000 CCTV units across the four Greater JB districts (Johor Bahru, Iskandar Puteri, Pasir Gudang, and Kulai) and aims to complete installation of all 1,640 units contracted for in Greater JB by year-end.
Sumber: Business Today
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