3.

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November 26, 2024

ITMAX System Bhd (ITMAX MK)

BUY
3Q24: Early dividend surprise Share Price
12m Price Target
MYR 3.55
MYR 4.40 (+24%)
Previous Price Target MYR 4.40

Another record quarter; maintain BUY Company Description

Itmax System Bhd. engages in providing video
ITMAX positively surprised with a 1st interim DPS for FY24 of 1.4sen (9M24 surveillance and analytics services.
DPR of 24%; FY22/23 DPR @ 20%). We do not rule out a 2nd interim DPS for
FY24. Our FY24-26E earnings forecasts are unchanged. Our BUY rating and
1.4x PEG-derived TP of MYR4.40 are also maintained. ITMAX remains our
top MY software pick for its compelling outlook as MY’s leading smart city Statistics
Technology

player and robust growth offering - 2Y (FY24-26E) CNP CAGR of 30%. 52w high/low (MYR) 3.75/1.72
3m avg turnover (USDm) 1.2
Free float (%) 40.7
Results within expectations
Issued shares (m) 1,028
Ex-one offs (+MYR0.2m), ITMAX’s 3Q24 core net profit came in at Market capitalisation MYR3.6B
MYR22.0m (+34% YoY, +15% QoQ). Cumulatively, 9M24 core earnings of USD820M
MYR58.9m (+24% YoY) met expectations, at 75% of ours/street’s FY24E Major shareholders:
earnings respectively. ITMAX’s 3Q24 turnover of MYR58.0m (+49% YoY, +9% Sena Holdingds Sdn. Bhd. 53.2%
QoQ) was its 5th consecutive quarterly record, primarily underpinned by BINTI ZAINAL ABIDIN AFINALIZA 6.0%
sequential growth in segmental revenue from DIS (+10% QoQ) and SIM (+8% Kenanga Investors Bhd. 3.2%
QoQ). Combined, both segments made up 98.4% of ITMAX’s 3Q24 turnover.
Malaysia

Price Performance

Margin improvements on stronger DIS contribution 4.00 320

3.50 280
ITMAX’s robust SIM segment growth in 3Q24 was underscored by (i) DBKL’s
VO7 street lighting project (awarded in 1Q24) and (ii) M&E works for the 3.00 240

ongoing “smart hospital” project at SSH (c.85% completion as at end- 2.50 200
3Q24). The SSH project is expected to be completed by Dec 2024.
2.00 160
Meanwhile, the DIS segment saw improved QoQ contribution from an
additional c.300 CCTVs that were commissioned in MBJB and MBPG in 1.50 120

3Q24, effectively doubling the number of revenue-generating CCTVs in

1.00 80
Johor to c.600 units. ITMAX’s 3Q24 EBITDA margin increased +3.5ppts QoQ, Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24

on the back of stable SIM costs and stronger high-margin DIS contribution. ITMAX System - (LHS, MYR)
ITMAX System / Kuala Lumpur Composite Index - (RHS, %)

-1M -3M -12M

Maintaining momentum in Johor; focus on execution
Absolute (%) (3) 7 96
We believe mgmt’s present focus is on executing its Johor contract awards Relative to index (%) (1) 10 79
in hand. Installation of all 1,640 CCTVs contracted for in Greater JB is
Source: FactSet
nearing completion, with testing/commissioning to follow suit over the
next 3-6 months. We also expect ITMAX’s Johor “smart parking” projects
to accrete more meaningfully to its top-line from 4Q24 onwards.

FYE Dec (MYR m) FY22A FY23A FY24E FY25E FY26E Abbreviations:

Revenue 107 150 190 260 320
EBITDA 72 95 127 173 212 CCTV – closed-circuit television
Core net profit 43 64 79 106 133 DBKL – Dewan Bandaraya Kuala Lumpur
Core EPS (sen) 4.2 6.2 7.6 10.3 13.0 DIS – Digital Infrastructure Solutions
Core EPS growth (%) 48.2 47.6 22.8 35.4 25.5 M&E – mechanical & electrical services
Net DPS (sen) 0.8 1.2 1.5 2.1 2.6
MBJB – Majlis Bandaraya Johor Bahru
Core P/E (x) 33.7 28.8 46.5 34.3 27.4
MBPG - Majlis Bandaraya Pasir Gudang
P/BV (x) 5.1 5.5 9.1 7.5 6.2
Net dividend yield (%) 0.6 0.7 0.4 0.6 0.7
SIM – supply, installation & maintenance
ROAE (%) 23.9 20.3 21.3 24.0 24.8 VO7 – Variation Order 7 (DBKL contract)
ROAA (%) 15.6 15.6 17.3 20.3 21.5
EV/EBITDA (x) 18.2 18.0 27.6 20.0 16.1
Net gearing (%) (incl perps) net cash net cash net cash net cash net cash
Consensus net profit - - 79 90 121
MIBG vs. Consensus (%) - - 0.0 17.6 10.1

Desmond Ch'ng, BFP, FCA Arvind Jayaratnam

[email protected] [email protected]
(603) 2297 8680 (603) 2297 8692

THIS REPORT HAS BEEN PREPARED BY MAYBANK INVESTMENT BANK BERHAD PP16832/01/2013 (031128)
SEE PAGE 7 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS
ITMAX System Bhd

Value Proposition Price Drivers

▪ ITMAX provides a niche exposure in the video surveillance Historical share price trend
and smart city industry through its end-to-end smart 3.50 280
5
solutions. 2
3.00 240
▪ Starting as an M&E contractor, ITMAX now provides enhanced 3 4
smart city solutions supported by its technical expertise and 2.50 200
extensive network infrastructure.
2.00 1 160
▪ The traffic/video surveillance industry in Malaysia is
relatively nascent in comparison to other developed cities. 1.50 120
▪ ITMAX is pursuing clientele diversification through tendering
1.00 80
for more non-DBKL contracts, while expanding its R&D Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24
capabilities to broaden its solutions to the market. ITMAX System - (LHS, MYR)

ITMAX System / Kuala Lumpur Composite Index - (RHS, %)

Revenue by business segment – FY23
Source: Company, Maybank IBG Research

1. Received a 3-year, MYR57m contract extension for street

lighting system in Kuala Lumpur.
2. Receives first two LOAs for CCTV installation in Johor
from MBJB (Johor Bahru) and MBIP (Iskandar Puteri).
3. Receives Variation Order 7 (VO7) from DBKL for street
lighting replacement works.
4. Awarded 4th LOA for Greater JB, completing clean sweep
of contract award wins for the metropolitan area.
5. Secures VO11 from DBKL to install an additional 5,000
CCTV units, effectively doubling capacity in Klang Valley.
Source: Company

Financial Metrics Swing Factors

▪ ITMAX is growing its recurring revenue business through the Upside
increase in surveillance cameras under circulation. This
provides a much higher operating margin in comparison to ▪ Continuous variation orders on its video surveillance
its supply & installation business. contract with DBKL to add more cameras under
▪ EBITDA margin was just 8% in FY19 but has since ballooned circulation and AI features.
to 67% in FY22 and 63% in FY23 with increasing contributions ▪ Adoption of similar video surveillance solutions by other
from its higher margin recurring business. states and municipals in Peninsular and East Malaysia.
▪ Free cash flow was in negative territory in FY20-21 as a ▪ Roll-out of smart surveillance solutions for more
result of incremental capex incurred to roll out the assets commercial players.
required for the network surveillance business. Free cash ▪ Stronger-than-expected orderbook replenishment across
flow turned positive in FY22, aided by its recent IPO all its business segments.
proceeds and we expect it to remain positive on the back of
improving operating cashflow generation.
Downside
ITMAX’s EBITDA and margin (MYR'm)
▪ Loss of existing contracts with DBKL to another
competitor.
▪ Higher-than-expected cost drag related to its
expansionary initiatives.
▪ Significant reduction in DBKL’s operating budget that may
impede continuity of existing contracts, as well as
potentially variation orders.

Source: Company

[email protected]
November 26, 2024 2
ITMAX System Bhd

Fig 1: ITMAX 3Q24 Quarterly Results Summary

FYE Dec (MYR m) 3Q24 3Q23 % YoY 2Q24 % QoQ 9M24 9M23 % YoY
Turnover 58.0 39.1 48.5 53.2 9.0 157.1 107.1 46.7
Cost of sales (16.1) (8.9) 80.9 (20.3) (20.7) (48.3) (20.0) 140.9
Gross profit 42.0 30.2 39.0 33.0 27.2 108.8 87.0 25.0
Operating expense (8.1) (5.8) 40.9 (3.8) 113.4 (19.0) (17.1) 11.0
EBITDA 33.8 24.4 38.6 29.2 16.0 89.8 69.9 28.4
Depreciation & amortisation (4.4) (3.6) 21.7 (4.4) 1.2 (12.9) (10.7) 20.5
EBIT 29.4 20.8 41.5 24.8 18.5 76.9 59.2 29.9
Interest expense (0.7) (1.0) (28.9) (0.8) (6.7) (2.3) (3.4) (30.2)
Interest income 1.3 1.8 (26.5) 1.5 (13.1) 4.6 5.6 (18.3)
Associates & JV - - nm - nm - - nm
One-off items 0.2 (0.1) nm 0.1 141.8 0.4 (0.9) nm
Pre-tax profit 30.2 21.5 40.4 25.6 17.7 79.6 60.6 31.3
Tax (7.8) (5.2) 48.8 (6.3) 22.9 (19.7) (14.0) 40.2
Minority interest (0.3) 0.0 nm (0.2) nm (0.6) 0.0 nm
Net profit 22.1 16.3 35.6 19.2 15.4 59.3 46.6 27.2
Core net profit 22.0 16.4 33.9 19.1 15.0 58.9 47.5 24.0

Gross margin (%) 72.3% 77.3% -5.0% 61.9% 10.4% 69.3% 81.3% -12.0%
EBITDA margin (%) 58.3% 62.5% -4.2% 54.8% 3.5% 57.2% 65.3% -8.1%
Pretax profit margin (%) 52.0% 55.0% -3.0% 48.1% 3.9% 50.6% 56.6% -6.0%
Core net profit margin (%) 37.8% 42.0% -4.1% 35.8% 2.0% 37.5% 44.4% -6.9%
Effective tax rate (%) 25.7% 24.2% 1.5% 24.6% 1.1% 24.7% 23.1% 1.6%
Source: Company, Maybank IBG Research

Fig 2: ITMAX’s TP Derivation based on PEG

FY25E EPS (sen) = (a) 10.3
Earnings 2Y CAGR 24-26E (%) 30.3
PEG ratio (x) – pegged to the regional peer median of 1.4x 1.4
Implied PER at FY25E (x) = (b) 42.5
Value per share (MYR) = (a) x (b) 4.40
Source: Maybank IBG Research

November 26, 2024 3

ITMAX System Bhd

FYE 31 Dec FY22A FY23A FY24E FY25E FY26E

Key Metrics
P/E (reported) (x) 35.2 25.1 46.5 34.3 27.4
Core P/E (x) 33.7 28.8 46.5 34.3 27.4
P/BV (x) 5.1 5.5 9.1 7.5 6.2
P/NTA (x) 5.2 5.5 9.1 7.4 6.0
Net dividend yield (%) 0.6 0.7 0.4 0.6 0.7
FCF yield (%) 0.2 0.4 0.9 1.8 2.7
EV/EBITDA (x) 18.2 18.0 27.6 20.0 16.1
EV/EBIT (x) 16.5 57.6 32.3 23.0 18.3

INCOME STATEMENT (MYR m)

Revenue 107.3 149.7 189.5 260.0 320.1
EBITDA 72.4 94.6 126.7 172.9 211.7
Depreciation (10.7) (14.7) (18.4) (22.2) (25.6)
Amortisation 0.0 0.0 0.0 0.0 0.0
EBIT 79.9 29.6 108.4 150.7 186.2
Net interest income /(exp) (2.6) 3.2 0.8 2.0 3.7
Associates & JV 0.0 0.0 0.0 0.0 0.0
Exceptionals (2.7) (0.7) 0.0 0.0 0.0
Other pretax income 0.0 0.0 0.0 0.0 0.0
Pretax profit 56.3 82.4 109.1 152.7 189.8
Income tax (15.7) (19.2) (27.3) (38.2) (47.5)
Minorities 0.0 0.0 (3.3) (8.2) (9.0)
Discontinued operations 0.0 0.0 0.0 0.0 0.0
Reported net profit 40.6 63.2 78.5 106.3 133.4
Core net profit 43.3 63.9 78.5 106.3 133.4

BALANCE SHEET (MYR m)

Cash & Short Term Investments 217.6 196.5 198.4 228.5 290.8
Accounts receivable 18.3 25.5 32.3 44.4 54.6
Inventory 8.4 13.9 15.8 20.6 24.7
Property, Plant & Equip (net) 127.3 172.6 214.3 252.1 286.5
Intangible assets 3.8 3.8 3.8 3.8 3.8
Investment in Associates & JVs 0.0 0.0 0.0 0.0 0.0
Other assets 16.5 16.5 16.5 16.5 16.5
Total assets 391.9 428.9 481.1 565.9 677.0
ST interest bearing debt 19.0 19.0 19.0 19.0 19.0
Accounts payable 15.8 16.4 17.5 24.0 29.4
LT interest bearing debt 56.5 41.5 26.5 11.5 1.5
Other liabilities 15.0 15.0 15.0 15.0 15.0
Total Liabilities 106.1 91.8 77.9 69.4 64.8
Shareholders Equity 285.8 337.1 399.9 485.0 591.7
Minority Interest 0.0 0.0 3.3 11.6 20.5
Total shareholder equity 285.8 337.1 403.2 496.5 612.2
Total liabilities and equity 391.9 428.9 481.1 565.9 677.0

CASH FLOW (MYR m)

Pretax profit 56.3 82.4 109.1 152.7 189.8
Depreciation & amortisation 10.7 14.7 18.4 22.2 25.6
Adj net interest (income)/exp 2.6 (3.2) (0.8) (2.0) (3.7)
Change in working capital (24.8) (12.1) (7.6) (10.3) (8.9)
Cash taxes paid (8.5) (19.2) (27.3) (38.2) (47.5)
Other operating cash flow 4.7 0.7 0.0 0.0 0.0
Cash flow from operations 41.3 66.6 92.7 126.3 159.0
Capex (39.0) (60.0) (60.0) (60.0) (60.0)
Free cash flow 2.3 6.6 32.7 66.3 99.0
Dividends paid (8.0) (12.6) (15.7) (21.3) (26.7)
Equity raised / (purchased) 203.9 0.0 0.0 0.0 0.0
Change in Debt (2.5) (15.0) (15.0) (15.0) (10.0)
Other invest/financing cash flow (11.9) 0.0 0.0 0.0 0.0
Effect of exch rate changes 0.0 0.0 0.0 0.0 0.0
Net cash flow 183.8 (21.1) 1.9 30.1 62.3

November 26, 2024 4

ITMAX System Bhd

FYE 31 Dec FY22A FY23A FY24E FY25E FY26E

Key Ratios
Growth ratios (%)
Revenue growth 34.5 39.5 26.6 37.2 23.1
EBITDA growth 51.3 30.7 34.0 36.4 22.5
EBIT growth 91.3 (63.0) 266.5 39.1 23.5
Pretax growth 37.6 46.3 32.4 39.9 24.3
Reported net profit growth 38.9 55.7 24.2 35.4 25.5
Core net profit growth 48.2 47.6 22.8 35.4 25.5

Profitability ratios (%)

EBITDA margin 67.5 63.2 66.9 66.5 66.2
EBIT margin 74.5 19.8 57.2 58.0 58.2
Pretax profit margin 52.5 55.1 57.6 58.7 59.3
Payout ratio 20.3 19.5 20.0 20.0 20.0

DuPont analysis
Net profit margin (%) 37.8 42.2 41.4 40.9 41.7
Revenue/Assets (x) 0.3 0.3 0.4 0.5 0.5
Assets/Equity (x) 1.4 1.3 1.2 1.2 1.1
ROAE (%) 23.9 20.3 21.3 24.0 24.8
ROAA (%) 15.6 15.6 17.3 20.3 21.5

Liquidity & Efficiency

Cash conversion cycle (165.1) (5.7) 34.3 35.1 32.9
Days receivable outstanding 56.5 52.7 55.0 53.1 55.7
Days inventory outstanding 184.4 133.2 147.9 129.4 128.1
Days payables outstanding 406.0 191.6 168.6 147.4 150.8
Dividend cover (x) 4.9 5.1 5.0 5.0 5.0
Current ratio (x) 6.5 6.2 6.3 6.4 7.2

Leverage & Expense Analysis

Asset/Liability (x) 3.7 4.7 6.2 8.2 nm
Net gearing (%) (incl perps) net cash net cash net cash net cash net cash
Net gearing (%) (excl. perps) net cash net cash net cash net cash net cash
Net interest cover (x) 30.4 na na na na
Debt/EBITDA (x) 1.0 0.6 0.4 0.2 0.1
Capex/revenue (%) 36.4 40.1 31.7 23.1 18.7
Net debt/ (net cash) (142.1) (136.0) (153.0) (198.1) (270.4)
Source: Company; Maybank IBG Research

November 26, 2024 5

ITMAX System Bhd

ECONOMICS REGIONAL EQUITIES SINGAPORE INDONESIA

Suhaimi ILIAS Anand PATHMAKANTHAN Thilan WICKRAMASINGHE Head of Research Jeffrosenberg CHENLIM Head of Research
Chief Economist Head of Regional Equity Research (65) 6231 5840 (62) 21 8066 8680
Malaysia | Philippines | Global (603) 2297 8783 [email protected] [email protected]
(603) 2297 8682 [email protected] • Strategy • Consumer • Strategy • Banking & Finance • Property
[email protected] • Banking & Finance - Regional
WONG Chew Hann, CA Willy GOUTAMA
CHUA Hak Bin Head of ASEAN Equity Research Eric ONG (62) 21 8066 8688
Regional Thematic Macroeconomist (603) 2297 8686 (65) 6231 5849 [email protected]
(65) 6231 5830 [email protected] [email protected] • Consumer
[email protected] • Healthcare • Transport • SMIDs
MALAYSIA Etta Rusdiana PUTRA
Erica TAY Jarick SEET (62) 21 8066 8683
China | Thailand WONG Chew Hann, CA Head of Research (65) 6231 5848 [email protected]
(65) 6231 5844 (603) 2297 8686 [email protected] • Telcos • Internet • Construction
[email protected] [email protected] • Technology • SMIDs
• Equity Strategy Paulina MARGARETA
Brian LEE Shun Rong • Non-Bank Financials (stock exchange) Krishna GUHA (62) 21 8066 8690
Indonesia | Singapore | Vietnam • Construction & Infrastructure (65) 6231 5842 [email protected]
(65) 6231 5846 [email protected] • Autos • Healthcare
[email protected] Anand PATHMAKANTHAN • REITs • Industrials
(603) 2297 8783 Jocelyn SANTOSO
Fatin Nabila MOHD ZAINI [email protected] Hussaini SAIFEE (62) 21 8066 8689
Malaysia | Philippines • Equity Strategy (65) 6231 5837 [email protected]
(603) 2297 8685 [email protected] • Consumer
[email protected] Desmond CH’NG, BFP, FCA • Telcos • Internet
(603) 2297 8680 Hasan BARAKWAN
Luong Thu Huong [email protected] PHILIPPINES (62) 21 8066 2694
(65) 6231 8467 • Banking & Finance [email protected]
[email protected] Kervin Laurence SISAYAN Head of Research • Metals & Mining • Oil & Gas
ONG Chee Ting, CA (63) 2 5322 5005
LEE Jia Yu (603) 2297 8678 [email protected] Faiq ASAD
(65) 6231 5843 [email protected] • Strategy • Banking & Finance • Telcos (62) 21 8066 8692
[email protected] • Plantations - Regional [email protected]
Daphne SZE • Banking & Finance
FX YIN Shao Yang, CPA (63) 2 5322 5008
(603) 2297 8916 [email protected] Satriawan HARYONO, CEWA, CTA
Saktiandi SUPAAT [email protected] • Consumer (62) 21 8066 8682
Head of FX Research • Gaming – Regional [email protected]
(65) 6320 1379 • Media • Aviation • Non-Bank Financials Raffy MENDOZA • Chartist
[email protected] (63) 2 5322 5010
TAN Chi Wei, CFA [email protected] THAILAND
Fiona LIM (603) 2297 8690 • Property • REITs • Gaming
(65) 6320 1374 [email protected] Chak REUNGSINPINYA Head of Research
[email protected] • Power • Telcos Michel ALONSO (66) 2658 5000 ext 1399
(63) 2 5322 5007 [email protected]
Alan LAU, CFA WONG Wei Sum, CFA [email protected] • Strategy • Energy
(65) 6320 1378 (603) 2297 8679 • Conglomerates
[email protected] [email protected] Jesada TECHAHUSDIN, CFA
• Property • Glove Germaine GUINTO (66) 2658 5000 ext 1395
Shaun LIM (63) 2 5322 5006 [email protected]
(65) 6320 1371 Jade TAM [email protected] • Banking & Finance
[email protected] (603) 2297 8687 • Utilities
[email protected] Wasu MATTANAPOTCHANART
STRATEGY • Consumer Staples & Discretionary Ronalyn Joyce LALIMO (66) 2658 5000 ext 1392
(63) 2 5322 5009 [email protected]
Anand PATHMAKANTHAN Nur Farah SYIFAA [email protected] • Telcos • Technology (Software) • REITs
ASEAN (603) 2297 8675 • SMIDs • Property • Consumer Discretionary
(603) 2297 8783 [email protected]
[email protected] • Renewable Energy • REITs VIETNAM Surachai PRAMUALCHAROENKIT
(66) 2658 5000 ext 1470
FIXED INCOME LOH Yan Jin Quan Trong Thanh Head of Research [email protected]
(603) 2297 8687 (84 28) 44 555 888 ext 8184 • Auto • Conmat • Contractor
Winson PHOON, FCA [email protected] [email protected]
Head of Fixed Income • Ports • Automotive • Technology (EMS) • Strategy • Banks Suttatip PEERASUB
(65) 6231 5831 (66) 2658 5000 ext 1430
[email protected] Jeremie YAP Hoang Huy, CFA [email protected]
(603) 2297 8688 (84 28) 44 555 888 ext 8181 • Food & Beverage • Commerce
SOH Jing Ying [email protected] [email protected]
(603) 2074 7606 • Oil & Gas • Petrochemicals • Strategy • Technology Natchaphon RODJANAROWAN
[email protected] (66) 2658 5000 ext 1393
Nur Natasha ARIZA Le Nguyen Nhat Chuyen [email protected]
PORTFOLIO STRATEGY (603) 2297 8691 (84 28) 44 555 888 ext 8082 • Utilities • Property
[email protected] [email protected]
ONG Seng Yeow • Healthcare • Oil & Gas • Logistics Boonyakorn AMORNSANK
(65) 6231 5839 (66) 2658 5000 ext 1394
[email protected] Arvind JAYARATNAM Nguyen Thi Sony Tra Mi [email protected]
(603) 2297 8692 (84 28) 44 555 888 ext 8084 • Services (Hotels, Transport)
MIBG SUSTAINABILITY RESEARCH [email protected] [email protected]
• Technology (Semicon & Software) • Consumer Discretionary Nontapat SAHAKITPINYO
Jigar SHAH (66) 2658 5000 ext 2352
Head of Sustainability Research TEE Sze Chiah Head of Retail Research Tran Thi Thanh Nhan [email protected]
(91) 22 4223 2632 (603) 2082 6858 (84 28) 44 555 888 ext 8088 • Healthcare
[email protected] [email protected] [email protected]
• Retail Research • Consumer Staples Yugi TAKESHIMA
Neerav DALAL (66) 2658 5000 ext 1530
(91) 22 4223 2606 Amirah AZMI Nguyen Le Tuan Loi [email protected]
[email protected] (603) 2082 8769 (84 28) 44 555 888 ext 8182 • Technology (EMS & Semicon)
[email protected] [email protected]
• Retail Research • Property

Amirul RUSYDY, CMT Nguyen Thanh Hai

(603) 2297 8694 (84 28) 44 555 888 ext 8081
[email protected] [email protected]
• Chartist • Industrials

Nguyen Thanh Lam

(84 28) 44 555 888 ext 8086
[email protected]
• Retail Research

November 26, 2024 6

ITMAX System Bhd

APPENDIX I: TERMS FOR PROVISION OF REPORT, DISCLAIMERS AND DISCLOSURES

DISCLAIMERS
This research report is prepared for general circulation and for information purposes only and under no circumstances should it be considered or intended as an offer to sell or a solicitation
of an offer to buy the securities referred to herein. Investors should note that values of such securities, if any, may fluctuate and that each security’s price or value may rise or fall. Opinions
or recommendations contained herein are in form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different
methodologies and are purely based on price and volume-related information extracted from the relevant jurisdiction’s stock exchange in the equity analysis. Accordingly, investors’ returns
may be less than the original sum invested. Past performance is not necessarily a guide to future performance. This report is not intended to provide personal investment advice and does
not take into account the specific investment objectives, the financial situation and the particular needs of persons who may receive or read this report. Investors should therefore seek
financial, legal and other advice regarding the appropriateness of investing in any securities or the investment strategies discussed or recommended in this report.
The information contained herein has been obtained from sources believed to be reliable but such sources have not been independently verified by Maybank Investment Bank Berhad, its
subsidiary and affiliates (collectively, “Maybank IBG”) and consequently no representation is made as to the accuracy or completeness of this report by Maybank IBG and it should not be
relied upon as such. Accordingly, Maybank IBG and its officers, directors, associates, connected parties and/or employees (collectively, “Representatives”) shall not be liable for any direct,
indirect or consequential losses or damages that may arise from the use or reliance of this report. Any information, opinions or recommendations contained herein are subject to change at
any time, without prior notice.
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forward looking statements are based on assumptions made and information currently available to us and are subject to certain risks and uncertainties that could cause the actual results to
differ materially from those expressed in any forward looking statements. Readers are cautioned not to place undue relevance on these forward-looking statements. Maybank IBG expressly
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occurrence of unanticipated events.
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report to the extent permitted by law.
This report is prepared for the use of Maybank IBG’s clients and may not be reproduced, altered in any way, transmitted to, copied or distributed to any other party in whole or in part in any
form or manner without the prior express written consent of Maybank IBG and Maybank IBG and its Representatives accepts no liability whatsoever for the actions of third parties in this
respect.
This report is not directed to or intended for distribution to or use by any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where
such distribution, publication, availability or use would be contrary to law or regulation. This report is for distribution only under such circumstances as may be permitted by applicable law.
The securities described herein may not be eligible for sale in all jurisdictions or to certain categories of investors. Without prejudice to the foregoing, the reader is to note that additional
disclaimers, warnings or qualifications may apply based on geographical location of the person or entity receiving this report.
Malaysia
Opinions or recommendations contained herein are in the form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental ratings as technical valuations
apply different methodologies and are purely based on price and volume-related information extracted from Bursa Malaysia Securities Berhad in the equity analysis.
Singapore
This report has been produced as of the date hereof and the information herein may be subject to change. Maybank Research Pte. Ltd. (“MRPL”) in Singapore has no obligation to update
such information for any recipient. For distribution in Singapore, recipients of this report are to contact MRPL in Singapore in respect of any matters arising from, or in connection with, this
report. If the recipient of this report is not an accredited investor, expert investor or institutional investor (as defined under Section 4A of the Singapore Securities and Futures Act 2001),
MRPL shall be legally liable for the contents of this report.
Thailand
Except as specifically permitted, no part of this presentation may be reproduced or distributed in any manner without the prior written permission of Maybank Securities (Thailand) Public
Company Limited. Maybank Securities (Thailand) Public Company Limited (“MST”) accepts no liability whatsoever for the actions of third parties in this respect.
Due to different characteristics, objectives and strategies of institutional and retail investors, the research products of MST Institutional and Retail Research departments may differ in either
recommendation or target price, or both. MST reserves the rights to disseminate MST Retail Research reports to institutional investors who have requested to receive it. If you are an
authorised recipient, you hereby tacitly acknowledge that the research reports from MST Retail Research are first produced in Thai and there is a time lag in the release of the translated
English version.
The disclosure of the survey result of the Thai Institute of Directors Association (“IOD”) regarding corporate governance is made pursuant to the policy of the Office of the Securities and
Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand and the market for Alternative Investment disclosed to the
public and able to be accessed by a general public investor. The result, therefore, is from the perspective of a third party. It is not an evaluation of operation and is not based on inside
information. The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. As a result, the survey may be changed after that date. MST does
not confirm nor certify the accuracy of such survey result.
The disclosure of the Anti-Corruption Progress Indicators of a listed company on the Stock Exchange of Thailand, which is assessed by Thaipat Institute, is made in order to comply with the
policy and sustainable development plan for the listed companies of the Office of the Securities and Exchange Commission. Thaipat Institute made this assessment based on the information
received from the listed company, as stipulated in the form for the assessment of Anti-corruption which refers to the Annual Registration Statement (Form 56-1), Annual Report (Form 56-2),
or other relevant documents or reports of such listed company. The assessment result is therefore made from the perspective of Thaipat Institute that is a third party. It is not an assessment
of operation and is not based on any inside information. Since this assessment is only the assessment result as of the date appearing in the assessment result, it may be changed after that
date or when there is any change to the relevant information. Nevertheless, MST does not confirm, verify, or certify the accuracy and completeness of the assessment result.
US
This third-party research report is distributed in the United States (“US”) to Major US Institutional Investors (as defined in Rule 15a-6 under the Securities Exchange Act of 1934, as amended)
only by Wedbush Securities Inc. (“Wedbush”), a broker-dealer registered in the US (registered under Section 15 of the Securities Exchange Act of 1934, as amended). All responsibility for the
distribution of this report by Wedbush in the US shall be borne by Wedbush. This report is not directed at you if Wedbush is prohibited or restricted by any legislation or regulation in any
jurisdiction from making it available to you. You should satisfy yourself before reading it that Wedbush is permitted to provide research material concerning investments to you under relevant
legislation and regulations. All U.S. persons receiving and/or accessing this report and wishing to effect transactions in any security mentioned within must do so with: Wedbush Securities
Inc. 1000 Wilshire Blvd, Los Angeles, California 90017, +1 (646) 604-4232 and not with the issuer of this report.

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ITMAX System Bhd

UK
This document is being distributed by Maybank Securities (London) Ltd (“MSUK”) which is authorized and regulated, by the Financial Conduct Authority and is for Informational Purposes only.
This document is not intended for distribution to anyone defined as a Retail Client under the Financial Services and Markets Act 2000 within the UK. Any inclusion of a third party link is for
the recipients convenience only, and that the firm does not take any responsibility for its comments or accuracy, and that access to such links is at the individuals own risk. Nothing in this
report should be considered as constituting legal, accounting or tax advice, and that for accurate guidance recipients should consult with their own independent tax advisers.

DISCLOSURES
Legal Entities Disclosures
Malaysia: This report is issued and distributed in Malaysia by Maybank Investment Bank Berhad (15938- H) which is a Participating Organization of Bursa Malaysia Berhad and a holder of
Capital Markets and Services License issued by the Securities Commission in Malaysia. Singapore: This report is distributed in Singapore by MRPL (Co. Reg No 198700034E) which is regulated
by the Monetary Authority of Singapore. Indonesia: PT Maybank Sekuritas Indonesia (“PTMSI”) (Reg. No. KEP-251/PM/1992) is a member of the Indonesia Stock Exchange and is regulated by
the Financial Services Authority (Indonesia). Thailand: MST (Reg. No.0107545000314) is a member of the Stock Exchange of Thailand and is regulated by the Ministry of Finance and the
Securities and Exchange Commission. Philippines: Maybank Securities Inc (Reg. No.01-2004-00019) is a member of the Philippines Stock Exchange and is regulated by the Securities and
Exchange Commission. Vietnam: Maybank Securities Limited (License Number: 117/GP-UBCK) is licensed under the State Securities Commission of Vietnam. Hong Kong: MIB Securities (Hong
Kong) Limited (Central Entity No AAD284) is regulated by the Securities and Futures Commission. India: MIB Securities India Private Limited (“MIBSI”) is a participant of the National Stock
Exchange of India Limited and the Bombay Stock Exchange and is regulated by Securities and Exchange Board of India (“SEBI”) (Reg. No. INZ000010538). MIBSI is also registered with SEBI as
Category 1 Merchant Banker (Reg. No. INM 000011708) and as Research Analyst (Reg No: INH000000057). UK: Maybank Securities (London) Ltd (Reg No 2377538) is authorized and regulated
by the Financial Conduct Authority.

Disclosure of Interest
Malaysia: Maybank IBG and its Representatives may from time to time have positions or be materially interested in the securities referred to herein and may further act as market maker or
may have assumed an underwriting commitment or deal with such securities and may also perform or seek to perform investment banking services, advisory and other services for or relating
to those companies.

Singapore: As of 26 November 2024, Maybank Research Pte. Ltd. and the covering analyst do not have any interest in any companies recommended in this research report.

Thailand: MST may have a business relationship with or may possibly be an issuer of derivative warrants on the securities /companies mentioned in the research report. Therefore, Investors
should exercise their own judgment before making any investment decisions. MST, its associates, directors, connected parties and/or employees may from time to time have interests and/or
underwriting commitments in the securities mentioned in this report.

Hong Kong: As of 26 November 2024, MIB Securities (Hong Kong) Limited and the authoring analyst do not have any interest in any companies recommended in this research report.

India: As of 26 November 2024, and at the end of the month immediately preceding the date of publication of the research report, MIBSI, authoring analyst or their associate / relative does
not hold any financial interest or any actual or beneficial ownership in any shares or having any conflict of interest in the subject companies except as otherwise disclosed in the research
report.
In the past twelve months MIBSI and authoring analyst or their associate did not receive any compensation or other benefits from the subject companies or third party in connection with the
research report on any account what so ever except as otherwise disclosed in the research report.
Maybank IBG may have, within the last three years, served as manager or co-manager of a public offering of securities for, or currently may make a primary market in issues of, any or all of
the entities mentioned in this report or may be providing, or have provided within the previous 12 months, significant advice or investment services in relation to the investment concerned
or a related investment and may receive compensation for the services provided from the companies covered in this report.

OTHERS
Analyst Certification of Independence
The views expressed in this research report accurately reflect the analyst’s personal views about any and all of the subject securities or issuers; and no part of the research analyst’s
compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in the report.
Reminder
Structured securities are complex instruments, typically involve a high degree of risk and are intended for sale only to sophisticated investors who are capable of understanding and assuming
the risks involved. The market value of any structured security may be affected by changes in economic, financial and political factors (including, but not limited to, spot and forward
interest and exchange rates), time to maturity, market conditions and volatility and the credit quality of any issuer or reference issuer. Any investor interested in purchasing a structured
product should conduct its own analysis of the product and consult with its own professional advisers as to the risks involved in making such a purchase.
No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of Maybank IBG.

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ITMAX System Bhd

Historical recommendations and target price: ITMAX System Bhd (ITMAX MK)

20 Jun 25 Sep 13 Feb 27 Feb 20 Mar 19 Aug 8 Oct

Buy : RM1.7 Buy : RM2.1 Buy : RM2.4 Buy : RM2.5 Buy : RM2.7 Buy : RM4.3 Buy : RM4.4
4.0

3.5

3.0

2.5

2.0

1.5

1.0
May-23 Aug-23 Nov-23 Feb-24 May-24 Aug-24 Nov-24

ITMAX System Bhd

Definition of Ratings
Maybank IBG Research uses the following rating system
BUY Return is expected to be above 10% in the next 12 months (including dividends)
HOLD Return is expected to be between 0% to 10% in the next 12 months (including dividends)
SELL Return is expected to be below 0% in the next 12 months (including dividends)
Applicability of Ratings
The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investment ratings are only applicable
to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not carry investment ratings as we do
not actively follow developments in these companies.

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ITMAX System Bhd

 Malaysia  Singapore  London  Hong Kong

Maybank Investment Bank Berhad Maybank Securities Pte Ltd Maybank Securities (London) Ltd MIB Securities (Hong Kong)
(A Participating Organisation of Maybank Research Pte Ltd PNB House Limited
Bursa Malaysia Securities Berhad) 50 North Canal Road 77 Queen Victoria Street 28/F, Lee Garden Three,
33rd Floor, Menara Maybank, Singapore 059304 London EC4V 4AY, UK 1 Sunning Road, Causeway Bay,
100 Jalan Tun Perak, Hong Kong
50050 Kuala Lumpur Tel: (65) 6336 9090 Tel: (44) 20 7332 0221
Tel: (603) 2059 1888; Fax: (44) 20 7332 0302 Tel: (852) 2268 0800
Fax: (603) 2078 4194 Fax: (852) 2877 0104

Stockbroking Business:  Indonesia  India  Philippines

Level 8, Tower C, Dataran Maybank,
PT Maybank Sekuritas Indonesia MIB Securities India Pte Ltd Maybank Securities Inc
No.1, Jalan Maarof
Sentral Senayan III, 22nd Floor 1101, 11th floor, A Wing, Kanakia 17/F, Tower One & Exchange
59000 Kuala Lumpur
Jl. Asia Afrika No. 8 Wall Street, Chakala, Andheri - Plaza
Tel: (603) 2297 8888
Gelora Bung Karno, Senayan Kurla Road, Andheri East, Ayala Triangle, Ayala Avenue
Fax: (603) 2282 5136
Jakarta 10270, Indonesia Mumbai City - 400 093, India Makati City, Philippines 1200

Tel: (62) 21 2557 1188 Tel: (91) 22 6623 2600 Tel: (63) 2 8849 8888
Fax: (62) 21 2557 1189 Fax: (91) 22 6623 2604 Fax: (63) 2 8848 5738

 Thailand  Vietnam
Maybank Securities (Thailand) PCL Maybank Securities Limited
999/9 The Offices at Central World, Floor 10, Pearl 5 Tower,
20th - 21st Floor, 5 Le Quy Don Street,
Rama 1 Road Pathumwan, Vo Thi Sau Ward, District 3
Bangkok 10330, Thailand Ho Chi Minh City, Vietnam

Tel: (66) 2 658 6817 (sales) Tel : (84) 28 44 555 888

Tel: (66) 2 658 6801 (research) Fax : (84) 28 38 271 030

 Sales Trading

Indonesia London
Helen Widjaja Greg Smith
[email protected] [email protected]
Tel: (62) 21 2557 1188 Tel: (44) 207 332 0221

Philippines India
Keith Roy Sanjay Makhija
[email protected] [email protected]
Tel: (63) 2 5322 3184 Tel: (91) 22 6623 2629

www.maybank.com/investment-banking
www.maybank-keresearch.com

November 26, 2024 10