KUALA LUMPUR (Sept 18): AmInvestment Bank has resumed coverage on computer mainframe systems specialist Infomina Bhd (KL:INFOM) despite the company’s profit and revenue declines in financial year 2025 (FY2025), being confident in its strong core renewal business expected to grow in FY2027.
Infomina’s net profit dropped 36% to RM21.1 million, and revenue fell 12.6% to RM196.7 million, mainly due to lower sales in its technology segment and a RM10 million doubtful debt from a customer in the Philippines.
AmInvestment says the decline hides a steadier core business, with renewal contracts growing 36% annually from 2020 to 2025, now making up 91% of profits with higher margins.
The bank raised its target price for Infomina to RM1.70 per share from RM1.39, based on a 24 times price-to-earnings (PE) target and FY2027 earnings forecasts. Two other analysts also have “buy” ratings on the stock but with lower targets.
Infomina provides reliable mainframe systems — powerful and reliable computers that handle huge volumes of transactions and data in real time — mainly to banks and government agencies across Asia, including Malaysia, Thailand, Hong Kong, the Philippines, and Japan. These systems are costly to replace, so clients sign long-term contracts, providing steady income.
Earnings are expected to rise 32% to RM43 million in FY2027, driven by contract renewals and growth in Japan, where 10 clients have already joined. Japan is forecast to contribute 14% of revenue by FY2027.
Infomina is also expanding into artificial intelligence (AI) and data analytics, with tools for credit risk, fraud detection, and cybersecurity. It has a 51%-owned joint venture with Geolytik that created ValuationXchange, Malaysia’s first digital property valuation platform. This platform helps banks reduce credit risk and speed up loan approvals.
AmInvestment said the AI platform, led by expert Joe Thor (co-founder of MyProperty Data, later bought by PropertyGuru), could become a significant source of recurring revenue.
Infomina was trading 3.68% lower at RM1.31 per share earlier on Thursday, valuing the company at RM787.6 million. The stock has fallen 5.07% year to date.