KUALA LUMPUR (March 4): ACE Market-listed SMRT Holdings Bhd has been awarded a project by Pito AxM Platform (PAPI) to deploy its managed ATM infrastructure solutions in the Philippines through its wholly owned subsidiary N’osairis Technology Solutions Inc (NTSI).

SMRT did not disclose the value of the project, which will take place over three years, with NTSI deploying its solutions at the designated ATM sites by the end of 2024.

“Following the deployment, SMRT shall fully manage the sites’ network infrastructure for three years, commencing from the installation date of each site,” said SMRT in a statement on Monday.

“There is no fixed contract sum stated in the letter of offer. NTSI will bill according to work done in accordance with the timing and specification of sites to be identified by PAPI,” it said in a separate bourse filing.

According to the filing, PAPI is a wholly owned subsidiary of Seven Bank, a Japanese bank and leading global ATM network and financial service provider. It was incorporated in the Philippines in 2019 to offer ATM services in the local market.

On the financial front, SMRT said it intends to finance the commitment via internally generated funds.

It added that the project is expected to contribute positively to the earnings per share and net assets per share of the SMRT group, with recurring maintenance revenue to be recognised for the next three years thereafter.

“With the additional sites that we will manage, we will further grow our recurring income base. Currently, more than 50% of our revenue stems from recurring sources. As we expand our footprint into the Philippines, we are well-positioned to replicate our proven business model in other potential markets across Asean,” said its managing director Maha Palan said in a statement.

For the six-month financial period that ended Dec 31, 2023 (6MFY2024), the company posted a net profit of RM13.61 million, on the back of the revenue of RM35.17 million.

SMRT is a pure technology player focusing on Internet of Things (IoT) services, which serves various clientele industries including utilities, banking and finance, gaming and entertainment, as well as retail companies.

At Monday’s noon break, SMRT's share price was lower by half a sen or 0.56% at 88.5 sen, valuing the group at RM402.89 million.