Summary:
Info-Tech Systems (ITS) operates a cloud-based HCM platform for Singapore’s SME segment. Asset-light SaaS model [Rule of 40 expected to improve from 67% to 90% FY26F] collects annual revenue upfront which resulted in debt-free balance sheet with 17% FY26F FCF yield and 6.6% dividend forecast.
On track to hit $100mil revenue as its 90+% grant/subsidy portfolio expected to receive significant boost from SG 2026 AI budget.
Currently trading at 9.3x FY26F PE (5.9x ex-cash), 0.12x PEG and 4.4x EV/EBITDA vs global SaaS peer average of 12.5x EV/EBITDA and STI PEG of 1.55x.
Our Total Shareholder Return (TSR) framework estimates Intrinsic Value/Target Price of $2.00. Initiate coverage on ITS with BUY recommendation with potential 105% upside (or implied $517mil market cap).
RHT Capital Research
George.Koh@rhtgoc.com
Paul.Schymyck@rhtgoc.com
