Siam Bank contract pushes Infomina's orderbook by over 32pct to RM530mil: CGS-CIMB

NST Wed, Dec 28, 2022 02:04pm - 1 year View Original


KUALA LUMPUR: The latest contract win from Siam Commercial Bank Public Co Ltd (SCB) will expand Infomina Bhd's orderbook by 32.2 per cent, from RM401 million as at end-November to RM530 million, CGS-CIMB Research said.

The orderbook should keep Infomina busy until financial year 2027, said CGS-CIMB in a report today.

The firm said the latest contract value would be recognised over a period of three years on a straight line basis.

"In addition, we view the profile of SCB as a leading bank in Thailand as well as in Asean as a testament to Infomina's capabilities in the mainframe and IT transformation space," CGS-CIMB added.

Infomimna, in its Bursa Malaysia announcement on Tuesday, said it had secured a US$28.4 million (RM125.1 million) contract from SCB  to provide services under its renewal segment (provision of technology application and infrastructure operations) as well as solutions for the improvement and implementation of SCB's Application Programming Interface.

"Our channel checks with Infomina reveal that it is targeting to finalise more contracts with local and foreign customers in the next three to six months. We estimate contracts totalling RM100 million-RM150 million, contributing positively to both its renewal and turnkey segments," CGS-CIMB said. 

The firm also estimates that Infomina's tenderbook currently stands above RM380 million.

CGS-CIMB expects further expansion as Infomina wins more contracts from new and existing customers in the IT transformation and mainframe space.

CGS-CIMB reiterated "Add" on Infomina with a higher target price of RM1.70.

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