KUALA LUMPUR (May 25): ITMAX System Bhd (KL:ITMAX) posted a 24.2% increase in net profit for the first quarter ended March 31, 2026, supported by stronger contributions from its digital infrastructure solutions business and improving margins amid ongoing smart city infrastructure rollouts.

Quarterly net profit rose to RM25.01 million from RM20.15 million a year earlier, while revenue climbed 29.8% to RM65.86 million from RM50.73 million, a bourse filing showed.

The group’s operating profit grew at a faster pace of 34.1% year-on-year to RM35.93 million, lifting its operating profit margin to 54.6% from 52.8% previously.

Its digital infrastructure solutions segment remained the largest earnings driver, contributing 83% of total revenue. Revenue from the segment surged 47.1% year-on-year to RM54.7 million, underpinned by continued expansion in smart city-related projects and recurring income streams.

No dividend was declared for the quarter under review.

 Managing director and chief executive officer William Tan Wei Lun said the group started 2026 on a strong footing as investments and deployments in smart city infrastructure continued to gain traction.

“We are pleased to kick off 2026 with another quarter of strong growth, driven by the continued expansion of our digital infrastructure solutions segment and recurring income base,” he said.

Tan added that the group has continued to strengthen its presence in Johor after securing additional contracts during the quarter, further reinforcing its position within the state’s smart city ecosystem.

He said ITMAX remains optimistic about sustaining its growth momentum, as demand for smart city infrastructure continues to rise in line with increasing needs for urban management and digital connectivity.

Shares in ITMAX closed down four sen or 0.8% to RM4.76 on Monday, valuing the company at RM4.93 billion. Over the past one year, the counter has gained 26.6%.