KUALA LUMPUR (April 19): Shares of IT services firm Infomina Bhd fell on Friday to its lowest in nearly one year as its latest results disappointed investors even as analysts largely remained bullish.

Infomina dropped as much as eight sen or 5.52% to RM1.37 — its lowest since May 17, 2023. The stock however pared its loss to RM1.40, still down five sen or 3.45%, after 2.16 million shares traded. At RM1.40, the company is valued at RM841.75 million.

"We continue to see slow recognition in the renewal segment as likely due to the new contracts starting in FY2025 and some turnkey projects delivered and recognised during 2QFY2024," AmInvestment Bank said in a note to clients.

AmInvestment Bank, which maintained its "hold" call, trimmed its earnings forecast for Infomina by 8% for the financial year ending May 31, 2024 (FY2024) as the nine-month net profit of RM25 million only accounted for 65% of both the research house's and consensus estimates.

Still, three other analysts remained bullish with "buy" recommendations, according to Bloomberg. The consensus 12-month target price is RM1.73.

Shares of Infomina have declined 18% year-to-date following Friday’s decline.

Infomina's net profit in the third quarter ended Feb 29, 2024 (3QFY2024), fell by 61.4% to RM8.78 million from RM22.72 million a year ago, as its revenue plummeted by 53.7% to RM50.78 million from RM109.73 million.

The drop in revenue, particularly in the technology infrastructure operations, maintenance, and support services segment, was mainly due to a one-off overage fee charged to its customer for higher-than-expected utilisation in the previous corresponding quarter.

For the nine-month period (9MFY2024), Infomina's net profit dropped by 23.1% to RM24.99 million from RM32.51 million, as revenue came in lower at RM166.63 million, falling by 14% from RM193.72 million.