Infomina shares down 5% day after announcing 54% jump in 1Q net profit

by M. JAY SHEILA

INFOMINA Bhd stock price slid 4.7% to RM1.62 with close to 881,700 shares exchanging hands as at 11.30am even after reporting a record year. 

The regional technology solutions provider’s net profit for its first-quarter ended Aug 31, 2023 (1Q24)  jumped 53.6% to RM7.3 million from the same period a year earlier. 

In an exchange filing yesterday, Infomina said its revenue for the same period rose by 34.0% to RM56.2 million mainly due to revenue recognised on new and renewed contracts, particularly in the Philippines and Thailand; and higher revenue recognised for design and delivery of technology infrastructure solutions segment in respect of contracts in Malaysia.

Its earnings per share (EPS) was at 1.21 sen, compared to 67.95 sen in 1Q23.

Infomina said it expects the IT industry to demonstrate significant growth, which will be driven by two broad trends, the rapid implementation of artificial intelligence (AI) and the extensive use of application programming interfaces (API).

With the group’s track records and strong balance sheet post IPO, the group is well positioned to leverage on this wave as we have already built the necessary industry knowledge and experience to customise APIs and integration for the customers, it said.

Infomina said it will continue to explore more business opportunities, locally and regionally, to further enhance its orderbook.

Its MD Yee Chee Meng said having delivered a record performance for both revenue and profitability in FY2023, this is a welcome start to the new FY2024 for Infomina.

“Earnings growth was largely driven by a strong performance from our technology infrastructure operations, maintenance, and support services segment as we carried out key contracts in the Philippines and Thailand,” he said.

“Looking ahead, we expect our strong performance to be underpinned by an outstanding orderbook of above RM450 million comprising of a well-diversified portfolio of over 60 active clients across multiple industries and geographical locations including Malaysia, Singapore, Thailand, Philippines, Indonesia, Hong Kong, China and Taiwan,” he said.

Its top shareholders are Infomina Holdings Sdn Bhd with a 55.41% stake, MD Yee Chee Meng (6.28%) and ED Raymond Lim Leong Ping (5.91%). It has a market capitalisation of RM974 million.

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