KUALA LUMPUR (March 20): ITMAX System Bhd (KL:ITMAX) said on Thursday that its subsidiary has been appointed as the operator of a smart parking system by the Mersing District Council (MDM) in Johor.

ITMAX’s 65%-owned subsidiary Southmax Sdn Bhd will operate the open space parking in the whole area under the MDM’s purview for 15 years, commencing from May 1, 2025 to April 30, 2040.

The MDM is a local authority under the Johor state government, which administers the Mersing district.

Under the letter of appointment (LOA), Southmax is responsible for costs of the development, management and maintenance of the smart parking system, as well as the parking space equipment and signage.

Additionally, Southmax is also responsible for the costs associated with the promotion and public awareness efforts for the implementation of the smart parking system.

Parking revenue and compound collections will be shared between Southmax and the MDM, on the basis of 70:30.

ITMAX said the LOA is expected to contribute positively towards its earnings and net assets per share over the contract period.

ITMAX is primarily engaged in the supply, installation and management of public space networked systems. This includes specialising in the installation of networked lighting systems and traffic management systems.

The latest announcement came after the group clinched a RM26.6 million surveillance contract from the Seberang Perai City Council on Wednesday.

Earnings-wise, the group reported a 27.06% year-on-year increase in net profit to RM80.39 million for the financial year ended Dec 31, 2024 (FY2024), on the back of 47.13% higher revenue of RM220.23 million.

The increase in revenue was attributed to growth in digital infrastructure solutions and supply, installation and maintenance services.

ITMAX shares were two sen or 0.52% lower at RM3.79 at Thursday's noon break, valuing the group at RM3.91 billion. Over the past one year, the stock has risen 63%.

The stock is trading at a trailing 12-month price-earnings ratio of 48.9 times, according to AskEdge.

The average target price is RM4.67, according to Bloomberg, indicating potential upside of up to 23% from the last price of RM3.79.

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