My thoughts about info-tech systems as a share to invest.

Some of us were shocked when Info-Tech Systems went not so long ago IPO (first public offer) (July 4, 2025).

Infotech (Ticker: ITS) IPO with 24.9 million shares for $ 0.87 each. This has raised around $ 21.6 million that they want to use in their working capital, research and development and sale.

We have been using that for a while like our HR app. I can’t remember it completely. Was it the last 4 years?

I actually thought it was a pretty nice platform. Gets the job done. I have no idea how my other colleagues thought about it. I spoke with our head finances, which used to ensure the Human Resource roles and general sentiments, is that it is not that bad from his perspective!

A feedback is that they are very responsive when customers have problems get things done.

I just want to make a few notes about the financial data.

What does the financial profile of Info-Tech look like?

There are approximately 225 million outstanding shares and Infotech is currently being traded at $ 0.92. This gives it a market capitalization of $ 207 million.

I have put together some of the most important financialities below:

Year 2022 to 2024, the financial data is before IPO and on the right I show the financial data for the first half of 2025.

Infotech is just net cash. You can also see that Infotech is very profitable prior to the list. Growth with free cash flow is very good. The money has grown from $ 11.7 mil to $ 29.7 mil. The last 3 years before the list is mentioned, money has been taken from the company instead of setting up.

There are contract obligations because Infotech is active in a Saas model, so there are dedicated income, but the service is not yet used. Ultimately, this will flow to the income.

We see good income and gross profit growth in the past prior to IPO. After that it has been demolished in the last 6 months. The net profit and the growth of the free cash flow is also good.

The net profit for the first half 2025 was lower due to one -off list costs and one -off relocation costs of a Malaysian office. If not, the net profit would have been $ 7.2 million or 9% growth.

There is definitely a kind of operational leverage for a company like Info-Tech and it will be interesting if we see this in a stabilized state.

The profit yield if the use of 2024 profit is 5.9% [PE: 17 times] And if we have been canceled 1 hour 2025, 6.9% [PE: 14 times]. The latter is not always advisable for a young company because we do not know how lumpy the sale is, but whatever, I did it.

The free cash flow yield is higher.

I think infotech acts with an interesting appreciation. If this is more a technical company, a fairer appreciation would be 20 times. But if it is a company that is in a competitive landscape where the margins can easily be eroded, it looks honest 17 times.

Actually, if we better understand the money on the balance, they don’t seem to be necessary. But again, why do they have IPO in the first place to raise money when the money is superfluous?

The percentage of sales enables us to see how much they spend on sales, admin and R&D.

Kyith Which figure should we nereer on more? Profit or free cash flow?

I think we should look more at the net profit if we are zero on long -term sustainability. The main reason is that the capital expenditure for the company is currently minimal. However, a more technology and sales company is intensive manpower and the profit will consider continuous efforts to ensure that they remain competitive.

Not so easy, because you probably have to invest in manpower in advance to scale, so there can be some kindergarten there. It is always good to look at the two and to appreciate the company through triangulation instead of one figure alone.

Okay, let me come across some qualitative thoughts.

Does a company like Info-Tech have a canal at all?

I can’t tell.

Infotech, in principle, offers a Human Resource Management System (HRMS) to mainly small and medium -sized companies. More and more they also offer fundamental accounting software (which I have not experienced)

I think it is easy to be both offboard and on board. Of course we will not want to do them often, but if their target are companies that have 6 employees, 20 employees, it is not that difficult to switch. You only have to export the data or find a way to import the data into a new HR system.

If it is just as easy to have a potential client switch to the Infotech system, it might be just as easy to switch.

But then we might have spoken too much about canal in this world.

Some services such as Info-Tech can be just right:

1. Good support
2. Does what others do.
3. Do something more.
4. Not too expensive, especially with regard to the general income of the SMEs.
5. I have no stupid problems.
6. Show that you continue with the times and improve.
7. Do not show like every time you have a new function, you want to charge me extra.

I call this the “Munchi model” (if you don’t know that Munchi is a jiang kueh brand)

You don’t have to be special, you just have to do it well. Of course you cannot do everything, such as cross functions.

But for SMEs this might be the sweet spot.

In the end, some will leave you because they have become bigger, and you need new customers to fill those who leave you.

Would the competition not dramatically reduce the margins of Infotech?

That is possible, but I think in a different way.

In what kind of environment does Infotech work?

I think there are HRMs. Confirm that there is a big one on the working day.

And why do we observe that type of growth in 2022 to 2024 and this margin despite the environment?

Perhaps the market is large enough and there is a sweet spot there.

There are competitors and the Infotech range is good enough.

Why did Infotech make a list in the first place?

Again, they have collected around $ 20 million and these are the reasons why they decide to lift:

The skeptical part of me wonders that if you have $ 29 mil in cash, and therefore generate cash flow, why do you have to do IPO?

Why not only keep the money within the most important directors?

I think there might be a few reasons:

1. There are some mention stimuli by SGX or the government of Singapore in general.
2. Visibility
3. Cheaper financing in the future.
4. Why not take a free money?

The IPO money is actually a year of their sales and distribution, managers. It is their R&D costs for two years.

It feels like it is more money anyway.

But we’ll see.

New IPOs with unspoilt balance sheets always release the S-chip atmosphere for our old Singapore Stock Birds.

Info-Tech’s potential

Now this is the skeptical part, but hear me.

At some point, once you have a viable product (and they seem to have something), then the difference in growth is how good your sales team is to grow and use.

How do you manage accounts and do business development well.

Although the product makes a lot of difference, how good the sales team also makes a lot of difference.

I think some of my readers in IT sales would know this better than me.

The reason why I am skeptical is for the previous reasons. The money is already there and if cash is limited, the money was not a restriction in the first place.

Epilogue

I think Infotech is a awaiting.

I don’t understand how sales can see such a decrease after two good years. We have not seen their income mix or customer mix.

I hope there is not much situation, as the customer is a related friend. Maybe 2023 is unique. There are certainly questions.

I have this creepy feeling that I can worry too much and it appears that they have just been put on the market to mention and they just mention Lor. Perhaps that kind of things that Kyith started when he has a good idea and just grows it out in itself.

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Kyith is the owner and some writer behind investment canals. Readers coordinate investment canals to learn and build stronger, stronger power foundations, how to have a passive investment strategy, to know more about investing in Reit’s and the notes and bolts of active investing.

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From 2004 to 2019, Kyith worked as an IT operational engineer. He is currently working as a senior solutions specialist in insurance. All opinions about investment canals belong to him and do not represent the views on providing.

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