OCBC initiates coverage on Info-Tech Systems with “buy” call and fair value estimate of S$1.00

[SINGAPORE] OCBC Investment Research has initiated coverage on Info-Tech Systems with a “buy” call, on account of favourable secular growth trends that could benefit the software services provider.

This comes as the group debuted on the mainboard of the Singapore Exchange (SGX) on Jul 4 – as the first pure-play software-as-a-service (SaaS) provider for human resource management system (HRMS) and accounting software to list on the bourse.

The research house on Friday (Agnoted that the group’s software solutions’ scalability and accessible price points can be “attractive to cost sensitive SMEs that are just embarking on their digitalisation journeys and are first-time users of HRMS”.

“These customer-centric features allow it to differentiate from its competitors, positioning it well to benefit from a global movement towards SaaS offerings amidst policy support to transition towards digital economies,” OCBC Investment Research analyst Ada Lim said.

The research house on Friday (Aug 29) assigned the company a fair value estimate of S$1.00 – 16.3 per cent or S$0.14 above its closing price of S$0.86.

and a fair value estimate of S$1.00.

The research house noted that the software services provider is well-positioned to benefit from secular growth trends, including the global movement towards software-as-a-service (SaaS) offerings.