"We like this stock for its asset-light enterprise solutions with a growing user base in the SME market across various geographies," says Hanafiah.
Citing estimates by the United Nations, Hanafiah says the global AI market is projected to hit US$4.8 trillion by 2033. At the same time, AI could affect 40% of jobs, with up to one-third of the positions in advanced economies to be at risk of automation.
"The same advanced economies, however, are better placed to benefit where 27% of jobs could be improved by AI, boosting productivity and complementing human skills, this will take time and effort for the full potential of AI to be realised," he adds.
Hanafiah notes that Singapore has been proactive in keeping up with this frontier technology, including a commitment of over $1 billion from 2025 to 2030 to encourage AI research, real-world deployment and talent development.
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The Singapore government has announced that those who register and complete eligible AI courses will be entitled to a six-month free AI premium subscription. This initiative is expected to take effect in the second half of the year, but no details on course eligibility have been announced yet, he says.
The analyst calls this "structural shift" in policies an opportunity for Info-Tech Systems, particularly for its learning courses segment, operated via Info-Tech Academy, which now offers more than 15 courses that include six AI-related courses.
Course participants can tap SkillsFuture funding to financially subsidise the courses.
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"While eligible courses under SkillsFuture offer a wide range of skills and learnings, we think the government is putting more emphasis on AI-related upskilling given the fast-evolving nature of this technology and how disruptive it can be to the labour market," Hanafiah suggests.
Citing the company management, Info-Tech Systems is "actively expanding" its AI course offerings to meet the growing market demand and support workforce upskilling initiatives.
"The focus would be on practical, industry-relevant AI courses across various business functions, and management is planning to add 6-7 more courses on AI by the end of this year.
"With AI courses making up the majority of registrations year to date at the Academy, we believe Info-Tech Systems is well positioned to further capture this growing market amidst supportive public policies," he says.
For now, he is keeping his call and target price, pending further developments.
Info-Tech Systems shares, as at 10.53 am, is down 0.55% to trade at 91 cents.
