Infomina Berhad Tier 1 VAD - Broadcom mainframe software ■ We initiate coverage on Infomina, an IT solutions provider specialising in mainframe technology, with an Add call and TP of RM1.15 (20x CY24F P/E). ■ We project a 3-year EPS CAGR of 29.6% (FY22-25F), driven by a robust order book (cover ratio: 2.2x), new clients and geographical expansion. ■ As the sole Tier 1 VAD for Broadcom Mainframe Software in 8 countries currently, Infomina should benefit from rising demand for mainframe services. IT solutions provider, specialises in mainframe software technology Infomina is a Malaysia-listed information technology (IT) solutions provider, specialising in mainframe-related technology. It has two key business segments: i) Turnkey - design and delivery of technology infrastructure solutions (50.3% of FY5/22 revenue), and ii) Renewal - technology infrastructure operations, maintenance and support services (49.7%). Infomina has a strong regional clientele base that includes government bodies, financial institutions, and other industries (automotive, telecommunications, etc.). Sole Premier Tier I VAD for CA (Broadcom) in eight countries In our view, Infomina’s key strength is its status as sole appointed Premier Tier 1 Value- Added Distributor (VAD) of Broadcom Mainframe Software in eight countries since 2019 (Computer Associates Partner Regions). We think it can benefit from: i) growing adoption of Broadcom mainframe technology, and ii) repeat business from users of Broadcom mainframe software whose contracts are up for renewal (signed with Broadcom prior to VAD appointment). Based on Gartner’s research (2020), Broadcom had the largest global market share (37%) in mainframe software market - potential value of >US$7bn. Robust orderbook (2.2x FY22 revenue) and rising tender book Across FY23-27F, Infomina has an orderbook of RM443.6m (2.2x of FY22 revenue); 34.7% from turnkey and 65.3% from tenewal segments. It has tendered for projects with total value of RM376m (55%: turnkey segment). We expect robust orderbook replenishment from: i) client acquisitions (new users of mainframe and onboarding Broadcom clients), ii) upgrading works for mainframe users (capabilities enhancement), and iii) higher demand for renewal segment (clients tend to sign service level agreement post turnkey projects). Projecting 3-year net profit CAGR of 29.6% (FY22-25F) We project Infomina to post a 3-year core net profit CAGR of 29.6% (FY22-25F). This is driven by i) higher sales from both turnkey and renewal segments, ii) regional expansion into new markets, and iii) higher economies of scale. We initiate coverage on Infomina with Add and TP of RM1.15, pegged to our 20x CY24F P/E; in-line with local peers’ average CY23F P/E in the IT industry (19.9x, Figure 55). Our Add call is backed by: i) robust NP growth profile, ii) regional presence as Broadcom’s Tier I VAD, and iii) robust balance sheet (RM73.3m net cash at end-1QFY5/23). Re-rating catalysts: robust EPS growth and rise in institutional holdings (currently:c.1%). Downside risks: non-renewal of Tier 1 VAD status with Broadcom, sharp dip in orderbook value and lower-than-expected margins - CgsCimb 1 Dec 2022
Back in 2019 just a few days after its listing, rr88 bought and sold Greatec for 4 sen of profit and after that he cursed GT left and right saying it will drop. Many of us toyed around with rr88 and we ended up bagging home 20sen-50sen of profit a few months after that LOL!
Bojed. Normal lar stock market. Sometimes you make big, sometimes you lose big. Sometimes you make small, sometimes you lose small. Nothing wrong with all of these bcause its the nature of the beast.
What is wrong is with you go back digging a few years back n laugh at people. Only an asshole will do that.
There are more than 1 ways to make money in market place. You can buy n hold or you can speculate taking some quick a few cents profit. Speculating in n out of stocks every other day is way more rewarding than holding it if you know what you are doing. Bcause you take small profit but for many times.
By the time you make 40 cents in greatech in a few months, i oredy made more than 3.00 by going in n out of more than 20 stocks more than 50 times.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
imvu
7,888 posts
Posted by imvu > 2022-11-25 08:51 | Report Abuse
share issued : 601.250m @ ipo : 0.400 = market cap : rm240.50m