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OCBC's Lim raises fair value for Info-Tech Systems to $1.30

The Edge Singapore
The Edge Singapore  • 2 min read
OCBC's Lim raises fair value for Info-Tech Systems to $1.30
Info-Tech Systems, run by CEO Babu Dilip, is a Singapore-headquartered provider of cloud-based software as a service human resource management. Photo: Albert Chua
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Ada Lim of OCBC Group Research has raised her fair value for Info-Tech Systems after the business software provider reported better-than-expected first post-listing full-year results. From an initial fair value of $1, Lim, who has kept her "buy" call, now figures that this stock is worth $1.30.

For the year ended Dec 2025, the company enjoyed a three-fold jump in its "services" revenue, from providing training courses including those AI-related.

Its main business of selling software subscription enjoyed growth too, with annual recurring revenue up r18% to $25.4 million.

Info-Tech's adjusted EBITDA, which excludes one-off listing and relocation expenses totalling around $3 million, grew 42% to $24.2 million; its adjusted profit after tax grew 46% to $18 million, which implies a 3.7 percentage point expansion in profit margins to 31.9%.

The company plans to pay a final dividend of 1.95 cents, bringing its total payout for FY2025 to 3.5 cents.

Lim sees "positive tailwinds" for the company, due to a few factors.

See also: Analysts remain positive on CSE Global following recent FY2025 results

First, the government is expanding the Productivity Solutions Grant to support all firms, regardless of size, to access AI tools, which will presumably generate more demand for Info-Tech Systems.

In conjunction, as more people go for AI-related training, the company should see more demand for its services business too.

In addition, on top of its core accounting and HR software, the company has recently introduced software for customer relationship management too.

See also: DBS cuts AvePoint TP to $20 on SaaS de-rating

Info-Tech Systems has also moved into new markets, specifically Dubai, where it expects to ramp-up in the coming months.

Lim has raised her FY2026 and FY2027 earnings projections by 12.5% and 14%, respectively, and by applying the same 16x FY2027 valuation multiple, derived a higher fair value of $1.30.
Info-Tech Systems shares closed at $1.08, down 3.57% on March 2, amid a broader weaker market.

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