Report Summary

• Stock: Info-Tech Systems Ltd (ITSL SP)
• Action: Initiation (Non-Rated) – No explicit BUY/SELL call; coverage initiated
• Target Price: Not specified
• Key Highlights:
  • Info-Tech Systems Ltd is a leading cloud-based HRMS and accounting software provider for SMEs, listed on SGX Mainboard in July 2025.
  • FY2025 revenue grew 29% YoY to S\$56.5m, driven by a 183% surge in Services segment, especially AI-related training via Info-Tech Academy.
  • Core subscription revenue remains robust at S\$39.1m (69% of total).
  • Net profit rose 21.7% YoY to S\$15.0m, with adjusted net profit at S\$18.0m (+46% YoY).
  • Dividend proposed at 3.50 Singapore cents/share (yield 3.4%).
  • Debt-free, net cash position of S\$67.3m (~one-fourth market cap).
  • Trading at 17.2x P/E and 3.1x P/B.
  • Risks: Heavy reliance on SME segment and government grants (PSG); renewal risk as subsidies drop after first year; competitive pressures.
  • Investment catalyst: Expansion into Malaysia, Hong Kong, India, and launch of CRM platform for cross-selling to existing SME base.
• Ticker: ITSL SP
• Call to Action: Investors should monitor Info-Tech Systems Ltd for further updates, especially in relation to dividend policy, regional expansion, and resilience to SME/grant risks.