PETALING JAYA: Informina Bhd’s profitability is expected to improve in the upcoming quarters, underpinned by higher recognition from a sizeable pipeline of unbilled renewal projects, which commands 30% gross profit (GP) margin, according to Berjaya Research Sdn Bhd.
The research firm said that, in addition, several existing projects for the company are nearing completion and are anticipated to be renewed, particularly within the renewal segment.
“Beyond contract renewals, the group continues to offer enhanced services to its clients, fostering deeper engagement and longer-term customer relationships.
“Geographically, we expect revenue contribution from the Japanese market to double YoY in FY26, supported by a smoother onboarding process,“ Berjaya Research noted in a report.
The research firm said that as of the end of November 2025, Informina’s outstanding order book stood at RM555.4 million, comprising 85.5% from the renewal segment, while the remainder was from turnkey projects.
The group also secured an additional two renewal contracts in December 2025, lifting the FY26 order book replenishment to RM282.4 million to sustain revenue visibility over the next two to three years.
On earnings, Berjaya Research noted that Informina’s revenue rose 35% to RM62.9 million from RM46.6 million in Q2 FY25, mainly driven by stronger revenue recognition from the renewal segment (+26.4%) and the turnkey segment (+93%), as well as contributions from new data solutions ventures.
Despite achieving its highest quarterly revenue since listing, core Patami rose only marginally by 2.6% quarter-on-quarter to RM8.3 million from RM8.1 million in Q2 FY25, primarily due to a higher mix of lower-margin turnkey project progress billings, elevated administrative expenses (12.6% in Q2 FY26 vs 10.4% in Q2 FY25), and a higher effective tax rate (19.4% vs 14.9%).
“We reiterate our Buy recommendation on Informina with an unchanged target price of RM1.81, based on a target price-to-earnings ratio (PER) of 23x applied to our FY27 earnings per share.
“We continue to like Informina for its partnerships with established mainframe technology providers, strong earnings visibility from its renewal segment, and its appointment as a Premier Tier-1 VAD for Broadcom Mainframe software.
“Key downside risks include slower-than-expected project recognition and the potential non-renewal of Informina’s CA Singapore Regional Partner Agreement,“ the research firm said.
