Boasting a net profit of RM22.7 million for the third quarter ended Feb 28 (Q3 FY2023), the group’s cumulative (9M FY2023) core net profit stood at RM32.5 million, which amounted to 137% of consensus estimates.
AmInvestment Bank Bhd noted that Infomina’s 9M FY2023 core net profit already exceeded the company’s record-high net profit in FY2022 by 90%.
“The positive deviation was due to upward contract rate revisions to existing customers and the additional recognition of average fee from higher-than-expected usage and consumption by customers in Q3 FY2023,” it said.
Both AmInvest and BIMB Securities maintain “hold” calls on the stock. AmInvest raised the stock’s fair value to RM1.82, whilst BIMB increased the target price to RM1.72.
“We revise upwards our FY2024 and FY2024 forecast earnings by 27.6% and 21.1% respectively after Infomina’s Q3 FY2023 results came in above expectations,” said AmInvest.
Infomina’s Q3 FY2023 revenue surge mainly stemmed from a RM61 million increase in the provision of core banking applications for financial institutions in the Philippines and Thailand under the renewal segment.
Order book secure
Earlier this month, the group announced that Infomina received an acceptance letter dated March 29 from the Companies Commission of Malaysia (SSM).
Infomina has been appointed to develop a platform to facilitate public search, extraction and purchase of data on companies and businesses registered with SSM.
The appointment is for a period of six years commencing from March 31 to March 31, 2029.
“Infomina will charge a service fee, which will be based on the actual consumption of the platform, according to the appointment,” the group said in a Bursa filing.
BIMB noted that the group is confident in its plans to invest in research and development to expand technology offerings.
“We view this contract as kickstarting the third pillar of the main business segment,” said AmInvest.
Key risks to their calls include the termination of contracts from major customers, a sharp dip in order book value, as well as potential downside risks associated with the current United States banking crisis.
“Our performance (going forward) will be driven by an outstanding order book of about RM500.2 million,” said managing director Yee Chee Meng.
At noon break, Infomina’s share price rose 2.48% or 4 sen to RM1.65, giving it a market capitalisation of RM992.06 million.