KUALA LUMPUR (May 17): ITMAX System Bhd (KL:ITMAX) said on Friday that it has secured a RM105.3 million variation order (VO) from Kuala Lumpur City Hall (DBKL) for an extension of its contract to provide closed-circuit television (CCTV) and video messaging signages (VMS) integrated transport information system (ITIS) services.

In a filing with the local stock exchange, ITMAX said it has been granted an extension of phase one of the video surveillance and VMS ITIS contract, originally slated to conclude in 2026. With this VO, phase 1 of the ITIS contract will now run until 2029.

"The company will receive a letter of instruction from DBKL to commence work, with liquidated ascertained damages (LAD) to be imposed on the company for any delays in delivering the work within the stipulated timeframe," the group said.

ITMAX managing director and chief executive officer William Tan Wei Lun said: "Under this VO, ITMAX will enhance the existing integrated digital infrastructure solutions and systems to meet the evolving needs of our clients and drive digital transformation."

He added that the contract extension underscores the efficacy of the group's solutions provided to the city of Kuala Lumpur and the trust DBKL has vested in the company.

ITMAX is primarily engaged in the business of supplying, installing, and providing public space networked systems.

At the midday break, ITMAX shares were eight sen or 3.52% higher at RM2.35, giving the group a market capitalisation of RM2.42 billion. Year to date, the stock has rallied 31.28%.