KUALA LUMPUR (April 15): ITMAX System Bhd (KL:ITMAX) said its 65%-owned subsidiary has secured a RM603.5 million variation order from the Johor Bahru City Council (MBJB) to deploy additional artificial intelligence (AI) video surveillance systems in Johor Bahru.

In a bourse filing on Wednesday, ITMAX said its partially owned unit Southmax Sdn Bhd received and accepted the variation order dated April 14.

The variation order is in relation to the main contract involving the provision of video surveillance services, including a smart command centre and AI-enabled closed circuit television (CCTV) systems, that was awarded to the company by MBJB in 2023 valued at RM105.32 million.  

Under the variation order, Southmax will undertake the installation of additional AI-enabled CCTV units and advanced video analytics programming. The additional works will be carried out on a service subscription basis for a period of 20 years, commencing upon the completion of the installation phase.

ITMAX said the new order would contribute positively to its earnings as well as net assets per share until the expiry of the contract period.

Shares of ITMAX closed higher by 25 sen or 5.3% to RM4.94 on Wednesday, valuaing the group at RM5.12 billion.