ITMax: This AI-Powered Infra Player Just Doubled Profits — But Can It Keep Up?

ITMAX is an integrated digital infrastructure provider for smart cities, embedding AI primarily in its video analytics, traffic flow optimization, and predictive maintenance systems. Its proprietary AI-driven platforms interpret data from surveillance cameras, traffic sensors, and lighting networks to enable automated responses and more efficient urban management.

The AI is not the business by itself, but a critical enabler inside ITMAX’s smart surveillance, traffic, and maintenance systems, improving operational efficiency, automation, and customer lock-in.

Since its 2022 IPO, ITMAX has doubled both its revenue and PAT. However, gross margin has declined from 73% in 2022 to 61% in 2024, partially offset by improved operating leverage with SGA margin down to 15.5% versus 18.4% in 2020. ROE has stabilised at around 22%.

The key question is whether ITMAX can sustain its strong revenue momentum. It has a proven track record with Malaysian municipal governments, securing long-term contracts (e.g., 15-year smart traffic and surveillance deals in Johor). While the business remains concentrated in Klang Valley, it is expanding rapidly into Johor, Penang, and other states. As of FYE 2024, its order book stands at RM1.4 billion, locking in revenues until 2040.

ITMAX is well-positioned to maintain healthy double-digit growth (likely in the 15–20% range) over the medium term, driven by secured contracts, cross-selling opportunities, and expansion into new councils. That said, the exceptional 42% CAGR achieved from 2022–2024 was largely fueled by large upfront system deployments, which will taper into steadier service-driven growth.

Strategically, ITMAX is best understood as a regional operator of AI-enabled smart city infrastructure networks, providing end-to-end design, deployment, and long-term operation of public surveillance, traffic, and lighting systems. This is akin to a micro-scale Motorola Solutions or Hexagon urban division, but with direct ownership of underlying fibre and digital infrastructure, enhancing control and customer stickiness.

From an investment perspective, ITMAX currently trades at an Acquirer’s Multiple of about 34, which is well above typical sector multiples of 10–20. For example, Motorola Solutions and Hexagon’s smart infrastructure divisions typically range between 12 to 20. ITMAX’s premium valuation reflects high market expectations for its growth trajectory and embedded asset base.