ITMAX System Bhd has secured a RM30.24 million smart surveillance contract from the Pengerang Municipal Council in Johor to deploy an AI-enabled CCTV network and establish a smart integrated operations centre, reinforcing its position in Malaysia’s evolving smart city and municipal security market. The 15-year agreement, spanning from March 25, 2025 to March 24, 2040, marks ITMAX’s fifth contract win of the year and expands its footprint in strategic Malaysian municipalities, while contributing to a stronger, more integrated public-safety operating framework.
Contract Details and Scope
ITMAX System Bhd (KL:ITMAX) has clinched a bulked-up contract valued at RM30.24 million to implement a comprehensive smart surveillance system for the Pengerang Municipal Council (MPP) in Johor. This engagement entails deploying an artificial intelligence-enabled closed-circuit television (CCTV) network that integrates with a smart integrated operations centre (IOC). The scope is designed to deliver end-to-end visibility, analytics-driven monitoring, and centralized command-and-control capabilities for municipal safety, traffic management, and incident response.
The project’s duration is set for 15 years, beginning on March 25, 2025, and completing on March 24, 2040. The long-term horizon reflects the public sector’s preference for durable, scalable, and upgradeable security infrastructure that can adapt to evolving threats and operational needs. Within the broader context of ITMAX’s project portfolio, the MPP contract represents a strategic milestone in consolidating the company’s role as a key technology partner for municipal authorities seeking embedded intelligence, automation, and real-time decision support.
As part of the contract, ITMAX will be responsible for the installation of AI-enabled CCTV cameras, system integration, data analytics, and the setup of a smart IOC that consolidates feeds, alarms, and operational workflows. The integration is expected to enable predictive insights, faster incident triage, and more efficient resource deployment for law enforcement, traffic management, and public safety operations. The agreement also signals ITMAX’s capability to deliver large-scale, mission-critical surveillance ecosystems that align with national and regional smart-city aspirations, while offering municipalities a unified platform for future enhancements, including additional sensors, cross-agency coordination, and advanced data analytics.
This contract adds to ITMAX’s growing order book and reinforces its competitive edge in the smart surveillance space. With a project pipeline that has seen multiple municipal and regional deployments, ITMAX is positioning itself as a leading provider of integrated security and smart operations solutions in Malaysia. The company’s ability to deliver turnkey systems—from hardware installation to software-driven analytics and 24/7 monitoring—has become a differentiator as public-sector buyers increasingly demand end-to-end capability with clear performance metrics and long-term support commitments.
This deal also compounds ITMAX’s strategy of pursuing projects with substantial contract values, reinforcing its appetite for larger-scale deployments and enabling more predictable revenue recognition over time. For investors, the Maward Council engagement signals a validation of ITMAX’s technology stack, project management capabilities, and the ability to meet stringent government procurement standards. In sum, the RM30.24 million contract with the Pengerang Municipal Council is a cornerstone milestone within ITMAX’s growth narrative, anchored by a long-term, high-impact deployment that marries advanced AI-driven surveillance with centralized operations and strategic municipal outcomes.
Strategic Significance and Growth Positioning
The Pengerang contract signals a strategic expansion into Johor’s municipal security ecosystem, complementing ITMAX’s existing and planned deployments in other Malaysian towns and city districts. By delivering AI-powered CCTV networks integrated into a smart IOC, ITMAX reinforces its value proposition around real-time situational awareness, autonomy in monitoring, and data-driven decision support for public safety leadership. This combination of hardware, software, and centralized operations aligns with broader municipal governance objectives to enhance safety, reduce response times, and optimize resource utilization across police, traffic, and emergency services.
This win sits within ITMAX’s broader growth strategy aimed at expanding its footprint in key growth corridors and high-potential regions. The company has been deploying smart surveillance in multiple Malaysian locales, with the Pengerang contract representing a critical foothold in a zone characterized by rapid development, logistics activity, and growing security needs. The long tenors of the engagements support stable revenue streams and predictable capital expenditure planning for municipal authorities, enabling ITMAX to cultivate deeper customer relationships and incremental opportunities in adjacent service lines such as maintenance, software updates, and data analytics enhancements.
ITMAX’s emphasis on AI-enabled CCTV and smart IOC capabilities places the company at a favorable intersection of hardware resilience, software intelligence, and cloud-enabled analytics. The ability to capture, process, and analyze vast streams of video and sensor data in near real time translates into tangible operational benefits for municipalities: improved public safety outcomes, proactive incident management, evidence preservation, and data-driven policy evaluation. The Pengerang project also reinforces ITMAX’s competitiveness against peers by demonstrating successful project execution at scale, which is particularly valuable in sectors where procurement favors proven capabilities, long-term support, and measurable impact.
In addition to the direct advantages for Pengerang, the contract has broader strategic implications for ITMAX’s regional growth trajectory. It expands the company’s reference base in Johor and Southeast Malaysia, where urbanization and infrastructure modernization projects are accelerating. A successful deployment in MPP could serve as a template for future tenders across other municipalities seeking similar integrated security and operations capabilities. The favorable long-term contract terms help ITMAX plan for capacity, supply chain stability, and sustained investment in R&D to keep up with evolving surveillance technologies, including finer-grained analytics, facial recognition governance, and privacy-preserving data handling.
From an investor relations perspective, the Pengerang contract is a signal of confidence in ITMAX’s execution capabilities, project management discipline, and the scalability of its smart surveillance platform. It highlights the company’s ability to secure sizable framework agreements and convert them into recurring revenue through maintenance, software licensing, and updates across the 15-year horizon. The deal underscores ITMAX’s resilience during a period of competitive activity in the smart city technology market, while corroborating the company’s ability to win multiple contracts within a single year and sustain momentum into the next financial cycles.
Financial Performance and Market Outlook
ITMAX reported a robust financial performance for the financial year ended December 31, 2024 (FY2024), marked by a 27.06% year-on-year increase in net profit to RM80.39 million. This improvement was driven by a 47.13% jump in revenue, which rose to RM220.23 million. The substantial expansion in top-line revenue reflected heightened demand for ITMAX’s smart surveillance solutions, AI-driven analytics, and integrated operations capabilities, which translated into stronger profitability and earnings expansion. The FY2024 results demonstrate the company’s ability to convert project wins into sustained revenue streams and improved margins, underpinned by its diversified portfolio and scalable service offerings.
The latest contract further augments ITMAX’s order book and revenue visibility. Excluding the RM30.24 million Pengerang engagement, the company’s unbilled order book exceeds RM1.43 billion, indicating a substantial backlog of projects scheduled for recognition over the coming months and years. The lengthy project tenure ensures a predictable revenue recognition profile, aiding cash flow planning and operational scaling. The combination of a sizable order book and a successful track record of securing multiple contracts within a single year positions ITMAX for continued growth ahead of market expectations, as it leverages its AI-enabled surveillance stack and smart IOC capabilities across a growing list of municipal and commercial clients.
Investors have historically evaluated ITMAX using a mix of earnings multiples, project pipeline strength, and growth prospects in the regional smart surveillance and security technology space. As of the latest trading data, ITMAX shares traded around RM3.81 at midday, with a market capitalization near RM3.93 billion. The company reported a trailing twelve-month price-earnings ratio (P/E) of about 48.9 times, reflecting a premium valuation relative to broader market peers, a common stance for technology-driven security players with visible growth catalysts and robust order books. Market expectations, as captured by analyst consensus and price targets, suggested upside potential, with a blended target price around RM4.66, signaling potential upside of roughly 22.3% from the last traded price. While such valuations indicate confidence in ITMAX’s growth trajectory, investors typically weigh the execution risk of large municipal deployments, timely delivery, and ongoing maintenance commitments against the upside of sustained recurring revenue streams.
Beyond the headline numbers, the financial trajectory suggests ITMAX may benefit from improved operating leverage as its revenue base expands and fixed costs are spread over a larger production and service footprint. The longer-term contracts provide revenue visibility, which can contribute to improved gross margins if the company continues to optimize procurement, supply chain resilience, and project execution efficiency. Given the scale of unbilled orders and the potential for additional work on ongoing deployments, the company could experience a more pronounced earnings efficiency over successive reporting periods, provided it maintains its project delivery discipline and cost control.
From a broader market perspective, Malaysia’s smart surveillance and public-safety technology market is undergoing significant adoption, driven by municipal modernization, increasing urban density, and accountability mandates that emphasize safety outcomes. ITMAX’s technology stack—combining AI-enabled cameras, analytics, and centralized operations—addresses a broad spectrum of municipal needs, including traffic management, crime prevention, incident response, and public safety analytics. The Pengerang contract aligns with market demand for scalable, future-ready security infrastructure that can be upgraded with new sensors and analytics modules as governance priorities evolve, ensuring ITMAX remains an attractive partner for public-sector clients seeking long-term value and reliability.
Technology, Implementation, and Operational Impact
Central to ITMAX’s value proposition is its AI-enabled CCTV network, integrated with a smart IOC that provides real-time monitoring, incident response orchestration, and data-driven insights. The deployment in Pengerang is designed to deliver high-resolution video capture, intelligent analytics, and seamless data exchange across security, traffic, and municipal operations. AI capabilities enable automated threat detection, anomaly recognition, and behavior analysis, which can expedite decision-making for public safety teams and reduce the burden on human operators.
The smart IOC aspect of the project is particularly significant. By aggregating feeds from multiple cameras and sensors into a single control hub, the IOC can offer unified dashboards, standardized workflows, and centralized alert management. Operators can monitor critical corridors, public spaces, and infrastructure assets from a single interface, improving coordination between police, traffic authorities, and emergency responders. The system’s analytics layer can support predictive maintenance, optimize resource allocation, and drive proactive responses to emergent events, thereby enhancing overall municipal resilience.
ITMAX’s implementation approach is expected to emphasize scalability, resilience, and interoperability. The company’s experience in deploying large-scale surveillance ecosystems positions it to address the technical challenges associated with high data volumes, secure data handling, and long-term software support. The 15-year tenure implies a phased implementation plan with periodic upgrades, routine maintenance, and continual expansion as new requirements emerge. The project’s success will hinge on the company’s ability to deliver on service-level agreements, maintain data integrity, and ensure continuity of operations in the face of evolving security threats and regulatory expectations.
From an architectural standpoint, AI-enabled CCTV networks typically rely on distributed edge processing, centralized data storage, and cloud-based analytics. Edge devices process data locally to reduce latency, while central platforms aggregate information for deeper analytics, incident correlation, and long-term trend analysis. The smart IOC adds orchestration capabilities, enabling automated workflows, escalation protocols, and cross-agency collaboration. Implementing such a system in a municipal context requires careful planning around data governance, privacy, access control, and compliance with local regulations. ITMAX’s deployment strategy should account for these considerations to ensure that the solution delivers maximum public value without compromising individual rights or data security.
Operationally, the Pengerang project will likely involve a multi-phase rollout, including site assessment, equipment installation, system integration, pilot validation, user training, and full-scale deployment. The maintenance and support framework will be critical for sustaining system performance over the contract period, including firmware updates, security patches, and software enhancements. The long-term service model may incorporate performance-based incentives, regular reporting, and ongoing analytics optimization to ensure that the surveillance ecosystem continues to meet evolving municipal goals, including crime deterrence, traffic efficiency, disaster readiness, and civil safety.
ITMAX’s technology stack supports a broader strategy of offering end-to-end solutions that blend hardware with software intelligence and operational workflows. The company’s product suite is positioned to support future expansion into adjacent markets, such as smart parking, environmental monitoring, and city-wide data analytics platforms that can drive evidence-based policymaking and urban planning. The Pengerang contract thus not only delivers immediate safety gains but also acts as a catalyst for future capability enhancements, cross-sell opportunities, and deeper integration across municipal services.
Market Context, Bidding Landscape, and Growth Potential
The Pengerang contract comes at a time when ITMAX has expanded its bidding activity beyond early-stage projects to larger-scale, multi-year opportunities. The company reportedly pursued projects valued at more than RM600 million as of the end of 2024, reflecting an aggressive growth posture and confidence in its ability to win sizable municipal security engagements. This trend aligns with a broader push by municipal authorities to upgrade surveillance and public-safety infrastructure, leveraging advanced technologies to improve governance outcomes and citizen safety.
ITMAX’s growth narrative is underpinned by the combination of a robust order book, a track record of contract wins, and a diversified portfolio that includes smart surveillance deployments and related services. The company’s revenue mix is likely to be influenced by the mix of hardware deployments, software licenses, and ongoing service revenue from maintenance, updates, and analytics as a managed service. The ability to monetize long-term contracts through recurring revenue streams is a key driver of valuation and investor confidence, particularly as order backlogs provide revenue visibility across multiple years.
The company’s geographic footprint extends beyond Johor to other strategic markets such as Penang and Mersing, where ITMAX has secured prior contracts and established a foothold in the regional smart surveillance ecosystem. This geographic diversification helps reduce concentration risk and enables cross-sell opportunities across urban centers with similar governance priorities. The Pengerang engagement strengthens ITMAX’s regional credibility and demonstrates its ability to deploy sophisticated security and operations platforms in diverse municipal environments, laying the groundwork for larger, repeated collaborations with state and local authorities.
In terms of market dynamics, the Malaysian market for smart city and municipal surveillance is characterized by rising demand for integrated, data-driven solutions that enable authorities to manage complexity, respond rapidly to incidents, and optimize resource allocation. The winning of the Pengerang project underscores ITMAX’s competitive edge in delivering end-to-end solutions that combine camera networks, AI analytics, and centralized operations. The long-term horizon of the contract also aligns well with the lifecycle expectations of public-sector technology deployments, which typically require scalable architectures, ongoing maintenance, and timely upgrades to address evolving security needs and governance priorities.
From a strategic standpoint, the Pengerang deal complements ITMAX’s existing portfolio by reinforcing capabilities in AI-driven analytics, intelligent monitoring, and centralized operations—areas that are increasingly prioritized by municipalities as they modernize infrastructure and adopt smart-city frameworks. The project also presents opportunities to benchmark and refine deployment methodologies, data governance practices, and user training programs, all of which contribute to stronger execution capabilities and improved customer satisfaction across future engagements.
Investor Insight: Valuation, Outlook, and Risk Considerations
ITMAX’s market performance around the time of the Pengerang announcement reflects a positive reception to its ongoing contract wins and the expansion of its order book. The stock was trading in a range that suggested investor confidence in the company’s ability to translate large contracts into sustained revenue streams and earnings growth. The combination of a sizeable unbilled order book and a diversified project portfolio supports a constructive view of the company’s revenue visibility and long-term growth potential, even amid execution risks inherent to large municipal deployments.
Valuation metrics for ITMAX, including its trailing P/E ratios and analysts’ price targets, indicate a market that recognizes the quality of its earnings and the durability of its business model. However, as with any technology-enabled services company in the public sector, investors must weigh the potential volatility of project cadence, regulatory changes, and the company’s ability to maintain margins during the scaling of operations. The presence of a longer-term contract horizon can mitigate some near-term earnings volatility, as revenue recognition occurs over time and maintenance revenues contribute to recurring income streams. Investors typically assess ITMAX against peers in the security technology and smart-city segment, looking at factors such as contract size, execution risk, software differentiation, and the ability to secure repeat business across multiple municipal clients.
On the growth trajectory, ITMAX’s strategic emphasis on AI-enabled surveillance and integrated operations positions it well for continued expansion, both in Malaysia and potentially in neighboring markets with similar municipal modernization drives. The existence of a strong order book with a mix of large and mid-sized projects can support revenue planning, capacity management, and sustainable margin progression as the company scales. The Pengerang contract strengthens its credibility as a trusted partner for municipalities seeking comprehensive, future-ready security ecosystems, and it may serve as a platform for further collaborations in Penang, Mersing, and other key cities.
Nevertheless, as with any long-duration contract, IS risk considerations persist. These include project delivery risk, cost overruns, supplier dependencies, regulatory shifts, and potential changes in funding or policy directions that could affect the project’s scope or timeline. ITMAX would need robust project governance, strict cost control, and proactive stakeholder engagement to navigate these risks successfully. Effective risk management, transparent performance reporting, and the ability to adapt to evolving municipal requirements will be critical to preserving the anticipated benefits of the Pengerang engagement for both ITMAX and its investors.
Regional Footprint, Growth Catalysts, and Future Opportunities
The Pengerang engagement expands ITMAX’s presence in Johor and reinforces its strategic push into central and southern Malaysia’s municipal markets, including Penang and Mersing, where it already has traction. These regional moves are consistent with a broader growth framework that prioritizes proximity to major urban centers and high-potential municipalities that are actively modernizing public-safety infrastructure. By building a strong reference base in these regions, ITMAX can leverage case studies and deployment learnings to secure further contracts and cross-sell capabilities related to analytics, maintenance services, and platform upgrades.
Growth catalysts for ITMAX include the continued rollout of AI-enabled surveillance across multiple municipalities, enhanced data analytics capabilities that turn captured information into actionable insights, and the incorporation of new sensors and modules to expand the platform’s scope. The company’s ability to scale the smart IOC to manage additional agencies, integrate third-party systems, and support privacy-preserving analytics will be central to capturing additional value in the market. As municipalities increasingly adopt cloud-enabled analytics and centralized operations, ITMAX has an opportunity to position itself as a preferred partner for end-to-end security ecosystems that deliver measurable public-safety benefits while ensuring data governance and compliance.
In the near term, ITMAX could pursue related opportunities that complement its core surveillance offering. Potential growth avenues include expanding into smart parking management, traffic optimization, environmental monitoring, and other city-wide data platforms that leverage its existing camera networks and analytics capabilities. Such adjacent initiatives would enable ITMAX to monetize its installed base through ongoing software licensing, hardware upgrades, and value-added services, creating a holistic municipal technology stack that delivers comprehensive digital governance.
Operations, Governance, and Long-Term Value Creation
The long-term nature of the Pengerang contract highlights the importance of strong governance, rigorous project management, and disciplined execution. ITMAX will need to maintain high standards across procurement, installation, integration, training, and ongoing maintenance to ensure successful delivery and sustained performance throughout the contract life. A robust governance framework—encompassing risk management, change control, quality assurance, and stakeholder communications—will help align project milestones with expected outcomes, minimize delays, and address issues promptly as the deployment progresses.
From a societal perspective, the deployment of AI-enabled surveillance and smart IOC systems in a municipal context carries implications for safety, privacy, and civil liberties. ITMAX’s approach to data governance, privacy-preserving analytics, and transparent public communication will be essential to maintaining public trust and ensuring that the technology delivers tangible benefits without compromising individual rights. In this sense, the company’s emphasis on responsible deployment, clear governance protocols, and accountable operations will be integral to the long-term success and acceptance of its municipal technology platforms.
Long-term value creation for ITMAX hinges on sustained revenue growth, improved operating margins, and the ability to convert large-scale deployments into recurring revenue streams through maintenance, analytics updates, and platform enhancements. A successful Pengerang engagement can serve as a reference for future contracts, enabling ITMAX to command premium pricing for high-precision, reliability-focused deployments and expand its footprint across Malaysia’s municipal markets. The combination of a strong order book, robust financial performance, and a scalable technology platform positions ITMAX for continued strategic growth, enhanced shareholder value, and an enduring role in shaping Malaysia’s smart-city and public-safety landscape.
Conclusion
ITMAX System Bhd has secured a significant RM30.24 million smart surveillance contract from the Pengerang Municipal Council in Johor, underscoring the company’s expanding role in Malaysia’s municipal security and smart-city ecosystems. The project encompasses AI-enabled CCTV deployment and the establishment of a smart integrated operations centre, with a 15-year commitment running from March 25, 2025 to March 24, 2040. This win marks ITMAX’s fifth contract in the year and further strengthens an order book already exceeding RM1.43 billion in unbilled projects, providing a solid revenue runway through 2039 and beyond.
The deal reinforces ITMAX’s strategic growth trajectory, anchoring its footprint in southern Malaysia while supporting its broader regional expansion through Penang and other key markets. Financially, the company demonstrated solid execution in FY2024 with a 27.06% rise in net profit to RM80.39 million and a 47.13% increase in revenue to RM220.23 million, reflecting strong demand for AI-enabled surveillance solutions and integrated operations platforms. The stock market response and valuation signals suggest growing investor confidence in ITMAX’s ability to translate large project wins into sustained earnings and long-term value, even as execution risk remains a constant consideration for multi-year municipal deployments.
Looking ahead, ITMAX’s ongoing execution capabilities, robust order book, and diversified growth avenues position it well to capitalize on Malaysia’s ongoing investments in smart-city infrastructure and public-safety modernization. The Pengerang project provides not only a meaningful revenue stream but also a strategic platform for future deployments, technology advancements, and expanded partnerships with municipal authorities. By delivering integrated, AI-driven surveillance and centralized operational capabilities, ITMAX is carving out a leadership position in the evolving landscape of smart governance, with the potential to drive meaningful improvements in public safety, traffic management, and municipal efficiency for years to come.