KUALA LUMPUR (Nov 22): Apex Securities Bhd has initiated coverage on  IT infrastructure and cybersecurity solutions provider Infoline Tec Group Berhad with a “buy” recommendation at 79.5 sen and a target price of RM1.15, based on a price-to-earnings multiple of 17.0x on its 2025 forecast (FY2025F) earnings.

In a note on Wednesday, the research house said it is projecting Infoline's core net profit to demonstrate further growth at a three-year compound annual growth rate (CAGR) of 26.7% to RM24.6 million in FY2025F, on the back of acquisition of new customers and contract wins from a strong tender book.

“Future growth prospects to be driven by relatively large-scale expansions that are on the cards, coupled with favourable industry outlook,” it said.

Apex said Infoline boasts a healthy balance sheet with zero borrowings and a net cash position of RM37.9 million, representing 10.42 sen per share or 13.3% of current share price.

“In terms of bottomline, Infoline achieved an impressive 4-year CAGR of 40.0% in earnings growth from FY18 to FY22.

“The strong financial performance is a testament to Infoline's capabilities to further expand and grow their business,” it said.