ITMAX System Bhd, a smart city integrated system and solutions provider, delivered another quarter of robust performance in the fourth quarter of fiscal 2024, supported by strong demand for its digital infrastructure offerings and maintenance services. The group posted a notably higher net profit year on year, driven by a substantial expansion in revenue from its core digital infrastructure solutions and the accompanying supply, installation, and ongoing maintenance work. The combination of higher top-line growth and prudent cost management contributed to a healthier bottom line for the quarter. In addition to these earnings improvements, ITMAX announced an interim dividend, marking a continued commitment to delivering value to shareholders. Looking at the full year, the company registered meaningful gains across both net profit and revenue, reinforcing its strategic direction and market positioning in an environment characterized by ongoing inflationary pressures and intermittent supply chain disruptions. The market responded with a steady stance, with the shares closing at a firm level, reflecting both the earnings momentum and the company’s stated growth plans.
Q4 2024 Financial Performance: Profitability and Revenue Momentum
ITMAX System Bhd reported that net profit for the three months ended December 31, 2024 (4QFY2024) rose by 26.6% year over year, reaching RM21.10 million. This contrasted with RM16.67 million in the same quarter a year earlier, underscoring a meaningful improvement in profitability during the quarter. Earnings per share (EPS) climbed to 2.05 sen, up from 1.62 sen in 4QFY2023, signaling stronger profitability on a per-share basis. Several factors underpinned this quarterly earnings expansion. The company highlighted a 48.23% jump in quarterly revenue to RM63.13 million, from RM42.59 million in the corresponding quarter of the prior year. The growth in revenue was primarily driven by an expansion in digital infrastructure solutions and the associated supply, installation, and maintenance services that form the backbone of ITMAX’s business model.
This sustained top-line growth points to continued demand for ITMAX’s portfolio of digital infrastructure offerings, which includes the deployment and integration of digital systems, as well as ongoing service support. The notable revenue expansion also suggests that projects and contracts in the company’s target markets progressed through their execution phases during the quarter, contributing to higher billings and recognition of revenue. The combination of revenue growth and the corresponding cost structure led to stronger margins, culminating in a more robust quarterly net profit figure.
From a segment perspective, the quarterly performance reflects the company’s ability to execute on its core competency in digital infrastructure, integration, and maintenance services. The acceleration in revenue aligns with broader market demand for smart city technologies, urban digitalization initiatives, and the adoption of technology-driven solutions to improve city and enterprise operations. ITMAX’s strategy to broaden its service footprint—encompassing solution delivery, supply chains for digital components, and comprehensive maintenance—appears to have translated into measurable quarterly gains.
The company also disclosed an interim dividend of 0.6 sen per share for the quarter, signaling cash generation capability and a deliberate approach to capital returns. The dividend is payable on March 25, with the result that the total dividend for FY2024 stands at 2 sen per share, up from 1.2 sen in the previous year. This dividend track record complements the earnings trajectory and offers investors a degree of income stability alongside potential future growth upside.
In the broader quarterly context, ITMAX’s management emphasized that the results reflect solid execution against a backdrop of improving demand for its digital infrastructure and maintenance services. While inflationary pressures and occasional supply chain disruptions remain a macro concern for the global technology sector, the firm conveyed a sense of resilience underpinned by its diversified service offerings and its ability to scale operations to meet client needs. The reported numbers indicate that ITMAX has achieved a favorable quarterly mix, enabling it to translate higher revenue into meaningful profitability gains.
To summarize the quarterly performance: revenue rose to RM63.13 million, up from RM42.59 million a year earlier; net profit increased to RM21.10 million, up from RM16.67 million; EPS rose to 2.05 sen from 1.62 sen; and an interim dividend of 0.6 sen per share was declared for March 25, contributing to a total FY2024 dividend of 2.0 sen per share. These results reinforce ITMAX’s ability to leverage its core capabilities in digital infrastructure and maintenance services to deliver sustained earnings growth on a quarterly basis, even in the face of external pressures.
FY2024 Full-Year Performance and Dividend Strategy
Looking at the full year, ITMAX System Bhd closed FY2024 with a 27.06% year-on-year increase in net profit, totaling RM80.39 million, up from RM63.28 million in FY2023. Revenue for the full year rose 47.13% to RM220.23 million, from RM149.68 million in the prior year. This annual performance underscores a sustained expansion of the Group’s core business activities, particularly in digital infrastructure solutions, as well as the associated supply, installation, and maintenance services that support ongoing client operations.
The annual results point to a disciplined growth trajectory, underpinned by a favorable mix of higher-margin digital infrastructure engagements and recurring maintenance services. The year’s earnings growth implies improved operating leverage, where incremental revenue contributed more effectively to profit after considering fixed and semi-variable costs. This dynamic is consistent with ITMAX’s strategic emphasis on expanding its service offerings and enhancing its geographic reach and market segments, as outlined in its forward-looking statements.
Dividend distribution forms a key component of the company’s capital allocation framework. For FY2024, the company delivered a total dividend of 2 sen per share, up from 1.2 sen in the prior year. The interim dividend of 0.6 sen per share declared for the fourth quarter, combined with the distribution already made or planned for the balance of the year, aligns with the shareholder-friendly approach ITMAX has signaled to market participants. The incremental dividend payout reflects the company’s cash-generating capacity and its confidence in sustaining dividends alongside continued earnings growth. The market’s interpretation of this dividend strategy was reinforced by ITMAX’s share price behavior, with the stock closing at RM3.94 on the reported day and a market capitalization of about RM4.06 billion, indicating a stable investor sentiment in line with the company’s growth narrative.
From a strategic standpoint, the FY2024 results validate the company’s business model and execution capability. The substantial revenue growth, paired with a meaningful uplift in net profit, suggests successful scaling of both digital infrastructure projects and maintenance service ecosystems. The year’s performance also supports the management’s stated plan to propel growth through broader service offerings and expansion into additional geographical territories and market segments. In essence, ITMAX appears to have achieved a robust balance between scaling its core capabilities and maintaining financial discipline, positioning itself to pursue further growth opportunities in a competitive technology-oriented landscape.
In aggregate, the FY2024 outcomes signal not only a successful year by conventional financial metrics but also strategic positioning for longer-term value creation. The combination of stronger top-line growth, improved margins, and a prudent but growing dividend provides a solid platform from which ITMAX can pursue its stated goals of geographic and segment expansion, as well as continued enhancement of its digital infrastructure and maintenance service offerings.
Growth Strategy: Service Expansion and Geographic Diversification
ITMAX recognizes that sustaining momentum in a competitive smart city and digital infrastructure market requires a deliberate strategy that blends enhanced service offerings with geographic diversification. The company stated that it is looking to continue its growth by expanding service offerings and by entering new geographical territories and segments. This strategic direction is designed to extend the company’s footprint beyond current markets, reduce reliance on a narrower client base, and create cross-selling opportunities across its portfolio of digital infrastructure solutions and maintenance services.
A focal point of the growth plan is the deepening of ITMAX’s capabilities in digital infrastructure solutions. This includes not only the initial deployment of digital systems but also the ongoing supply chain coordination, installation expertise, and comprehensive maintenance that ensure the reliability and longevity of deployed systems. By strengthening the end-to-end service model, ITMAX can cultivate longer-term client relationships and secure recurring revenue streams that contribute to earnings resilience even amid cyclical fluctuations in project activity.
Expanding into other geographical territories stands as a key pillar of the growth framework. While the exact markets under consideration are not disclosed in the filing, the company’s emphasis on geographic diversification indicates a strategic push to access new demand pools and leverage regional opportunities in smart city and digital transformation initiatives. Regional expansion can provide several advantages, including access to new government programs, enterprise digitalization initiatives, and rising demand for integrated system solutions in sectors such as transportation, public safety, utilities, and infrastructure.
In addition to geographic expansion, ITMAX intends to broaden its market segments. This implies pursuing opportunities across different client sectors—potentially including municipal authorities, private sector enterprises undergoing digital modernization, and partnerships with technology vendors that require integrators and maintenance capabilities. A broader segment approach helps to mitigate sector-specific risks and to balance revenue streams, ensuring that no single vertical dominates the business cycle.
Operationally, the growth strategy likely encompasses investments in capabilities, people, and partnerships that strengthen project delivery, risk management, and service quality. Enhancements to supply chain resilience—such as diversification of suppliers and optimization of inventory management—could help address the inflationary pressures and supply chain disruptions noted in the market context. The emphasis on service expansion and geographic reach also suggests a focus on scalable delivery models, standardized processes, and potential value-added offerings that differentiate ITMAX from peers in the smart city and digital infrastructure space.
From an investor perspective, the growth plan signals an intention to translate the company’s existing strengths into broader revenue opportunities and enhanced shareholder value. The combination of expanding offerings and broadening geographic exposure could help stabilize revenue growth and improve the efficiency of capital deployment over time. While execution risk exists in any expansion plan—especially in new markets—ITMAX’s historical performance indicates an ability to scale its operations methodically and to align its capabilities with client demand.
Overall, the Growth Strategy section reflects a coherent plan that builds on the company’s core competencies in digital infrastructure and maintenance services, while pursuing avenues to diversify revenue streams and sharpen its competitive position. The emphasis on expanding service offerings and entering new territories and segments is consistent with the company’s stated goals of sustaining growth amid external pressures and capitalizing on the ongoing digitization trend that pervades both public and private sectors.
Market Environment, Risks, and Shareholder Value
The market environment for ITMAX is shaped by macroeconomic factors such as inflation and supply chain volatility, which the company acknowledged when describing its prospects as favorable despite these headwinds. These conditions can complicate project timelines, increase input costs, and compress margins if not managed carefully. Yet, the company’s results and forward-looking statements suggest that ITMAX has positioned itself to navigate these pressures through its diversified service portfolio, scalable delivery capabilities, and ongoing expansion into new markets and segments.
A key advantage for ITMAX lies in the growing demand for digital infrastructure and smart city solutions. Municipalities and enterprises are increasingly prioritizing digitalization, interoperability, and robust maintenance services to ensure continuity and resilience. In this environment, ITMAX’s integrated system and solutions offering—spanning digital infrastructure deployment, supply chain coordination for components, installation, and ongoing maintenance—addresses critical needs of clients seeking reliable, end-to-end delivery. The company’s ability to monetize these offerings across a broader client base and across multiple geographies bolsters its resilience to sector-specific downturns and provides a platform for sustained growth.
Risk factors inherent in ITMAX’s market include competition from other system integrators and technology providers, potential delays in public sector projects, and currency or commodity price fluctuations that can affect project economics. To mitigate such risks, the company’s strategy to diversify geographically and broaden its service offerings is prudent. A more varied client base, spanning both public and private sectors, can reduce exposure to any single market cycle. Equally important is the ongoing focus on operational efficiency, which can help protect margins and improve free cash flow generation, supporting continued shareholder returns through dividends and potential future capital returns.
In terms of investor value, the company’s steady dividend policy—elevated to a total of 2 sen per share for FY2024—augments total shareholder return, complementing potential capital appreciation from earnings growth and expansion activities. The market’s reaction, with ITMAX shares closing at RM3.94 and a market capitalization around RM4.06 billion, suggests that investors recognize the company’s ongoing earnings trajectory, balance sheet strength, and growth plans as credible drivers of long-term value.
To provide a concise risk assessment, the following factors warrant ongoing attention:
- Execution risk in expanding into new geographies and segments, including regulatory compliance and local market dynamics.
- Potential volatility in input costs and supply chains that could affect project economics and margins.
- Dependence on the timing and success of large-scale digital infrastructure initiatives, including public-sector programs and enterprise digitalization projects.
- Competitive landscape and potential pricing pressure in a crowded market of system integrators and service providers.
Despite these risks, ITMAX’s results and strategic direction indicate a robust pathway toward continued growth, supported by a favorable demand backdrop for digital infrastructure solutions and the company’s intention to broaden its service footprint and geographic reach.
Conclusion
ITMAX System Bhd’s fourth quarter of 2024 demonstrated solid profitability and strong revenue growth driven by its digital infrastructure solutions and maintenance services. The 26.6% year-over-year rise in Q4 net profit, coupled with a 48.23% jump in revenue, reflects the company’s ability to capitalize on the broader digital transformation trend and to translate higher activity into meaningful earnings gains. The interim dividend of 0.6 sen per share for Q4, bringing FY2024 total dividends to 2.0 sen, underscores ITMAX’s commitment to returning value to shareholders while investing in growth initiatives.
For the full year, ITMAX achieved a notable 27.06% increase in net profit and a 47.13% rise in revenue, reinforcing confidence in the company’s growth trajectory. The reaffirmation of a favorable outlook, despite inflationary pressures and supply chain disruptions, aligns with the company’s strategy to expand service offerings and enter new geographic territories and market segments. The stock’s steady performance and the company’s solid market capitalization suggest a favorable investor sentiment toward its earnings growth and strategic expansion.
Looking ahead, ITMAX’s plans to broaden its service portfolio and penetrate additional markets position it well to capitalize on ongoing digitization trends. While macro risks persist, the company’s demonstrated execution, diversified service model, and disciplined capital allocation—evidenced by a higher dividend payout—provide a sound basis for continued growth and shareholder value creation. In sum, ITMAX remains well positioned to pursue its growth agenda, supported by a resilient business model, a track record of earnings improvement, and an adaptable strategy designed to navigate a dynamic technology and infrastructure landscape.
