Initiation (Non-Rated)

Investment Catalysts: Info-Tech launched its proprietary CRM platform in Feb 2026, completing its software ecosystem and enabling native integration across sales, HR and accounting. This ecosystem facilitates high-margin cross-selling to the Group’s established base of 27,000 organizations and 1,000,000 active users. Simultaneously, Info-Tech Academy has emerged as a primary growth engine, driving a nearly threefold increase in Services revenue from S$5.3m to S$15.0m in FY2025 by capturing surging demand for generative AI and digital upskilling courses.

Beyond Singapore, the Group is successfully replicating its business model across Malaysia, Hong Kong and India. This multi-market footprint provides a robust framework for regional scaling. Most notably, the Group’s established presence in India offers a significant long-term opportunity, positioning Info-Tech to tap into one of the world’s largest workforces and diversify revenue streams.

Risks: Info-Tech’s reliance on the SME segment exposes it to the cyclical budget constraints and higher business cessation rates typical of smaller firms. This vulnerability is structurally linked to the PSG, as the PSG only subsidizes the initial year of adoption, the Group faces significant “renewal risk” when customers transition to full market rates. Any tightening of grant eligibility or a reduction in government digitalization funding would directly decelerate new sign-up rates and recurring revenue visibility.

Valuation: Info-Tech is currently trading at 17.2x P/E and 3.1x P/B, relative to the Mainboard average of 21.5 P/E and 2.2x P/B.

Company Background

Info-Tech Systems Ltd (“Info-Tech” or “the Group”) is a Singapore-based provider of cloud-native human resource management systems (HRMS) and accounting software solutions, with a strategic focus on small and medium-sized enterprises (SMEs) in Singapore and the region. Incorporated in 2007 by Mr. Peter Lee and Mr. Babu Dilip, the Group has grown from a local payroll and attendance software provider into an integrated platform spanning HR, workforce management and finance management, delivered under a software-as-a-service (SaaS) model. The software is designed to be easy to implement, cost-effective and interface-friendly aiming to help SMEs digitalise HR and accounting workflows while complying with regulatory requirements and improve labour productivity.

Over nearly two decades, Info-Tech has expanded alongside its core SME customer base, iteratively adding new modules as regulations and client needs evolved. The Group’s flagship HRMS was launched in its current cloud-based form in 2016 and now comprises multiple module covering time and attendance, leave and claims management, payroll processing, performance appraisal, project costing and scheduling, among others. The Group positions themselves as a “one-stop” solution, emphasizing on breadth of functionality, compliance and implementation support. This approach has contributed to high customer stickiness and customer retention for Info-Tech.

The Group listed on the Singapore Exchange (SGX) mainboard in July 2025, offering approximately 24.9 million shares at S$0.87 per share. The listing, which was SGX’s first pure-play Saas Provider Mainboard Listing, was positioned to support Info-Tech’s next phase of growth through product development and regional expansion. As at the time of listing, Info-Tech’s operations spanned Singapore, Malaysia, Hong Kong and India, with the Group serving more than 24,000 organizations and over 850,000 active HRMS users across these markets.

Key Management Structure

Business Segment

Info-Tech generates revenue from three primary segments: (i) Subscription, (ii) Services, and (iii) Hardware. Subscription comprises cloud-based HRMS and Info-Tech Accounting Software delivered under a SaaS model, Services covers implementation, training (including Info-Tech Academy) and payroll outsourcing, while Hardware relates mainly to access control and data collection devices that integrate with the Group’s software. This structure reflects how management reports performance and aligns with the Group’s strategy of building recurring software revenue supported by higher-touch services and complementary hardware.

(i) Subscription

Subscription revenue is driven by Info-Tech’s proprietary cloud-based HRMS and Info-Tech Accounting Software, both often offered-on term-based contracts. HRMS remains the dominant product within subscription, comprising modules such as mobile attendance, time and attendance, payroll, leave, claims, performance appraisal, project cost management, e-scheduling, applicant tracking and flexible work arrangement tracking. Info-Tech Accounting Software, launched more recently, complements HRMS by providing SMEs with integrated general ledger, invoicing, bank connectivity, inventory and statutory reporting capabilities.

(ii) Services

Services revenue comprises implementation support, training and education (including Info-Tech Academy), maintenance and support, and payroll outsourcing services. These activities are positioned to facilitate effective onboarding, drive adoption of the Group’s software and address clients’ operational needs where in-house HR or finance capabilities are limited. Info-Tech Academy offers structured HRMS training programmes, including WSQ-accredited courses which may qualify for government subsidies in Singapore, making it attractive to SME clients seeking to upgrade HR competencies while adopting new systems.

(iii) Hardware

Hardware revenue is derived primarily from sales of access control and data collection devices, such as biometric scanners and time-attendance terminals that integrate with Info-Tech’s HRMS. These devices are typically sold on a one-off basis, often on payment-in-advance terms, and are accompanied by repair and maintenance services that are recognised under services revenue. Hardware solutions are positioned as enablers of accurate, real-time time attendance data capture, which feeds directly into HRMS modules such as payroll and project costing.

Revenue Segment Breakdown

Industry Overview

Singapore has established itself as Asia-Pacific’s leading hub for cloud and SaaS adoption, supported by world-class digital infrastructure and an enterprise ecosystem increasingly comfortable with subscriptionbased IT models. Within this landscape, Info-Tech operates as a provider of integrated HRMS, and accounting software tailored to SMEs, benefiting from structural demand for compliance-driven digitalization and a support policy environment.

Info-Tech’s core addressable market centers on cloud-based HRMS and accounting solutions for Singapore SMEs, where complex regulatory requirements create persistent demand for automated, compliance-ready platforms. Singapore’s payroll and HR environment demands adherence to frequent Ministry of Manpower (MOM) regulatory updates and Central Provident Fund (CPF) contribution changes, and Inland Revenue Authority of Singapore (IRAS) reporting. Traditional manual processes or legacy systems struggle to address these changes reliably. Cloud HRMS solutions automate time & attendance, leave management, claims processing and statutory payroll calculations, while integrated accounting modules handle GST reporting, bank reconciliations and financial statements within a unified workflow. These functions combined allows Info-Tech’s software to address the problems faced by SMEs reliably and consistently, freeing SMEs from the traditional manual processes.

Singapore’s Productivity Solutions Grant (PSG) administered under IMDA’s SMEs Go Digital Programme directly subsidies up to 50% of costs for pre-approved HRMS and accounting solutions. Info-Tech markets its platform as PSG-eligible, effectively having adoption costs for qualifying SMEs and broadening the addressable market beyond larger, cash-rich firms. The Enterprise Development Grant (EDG) complements PSG by funding broader HR/Finance transformation projects, where integrated platforms like Info-Tech’s can form a core component. Budget 2026 expanded these support levels while streamlining application processes, signaling policy continuity for SME digitalization rather than reduction in fiscal backing. Info-Tech being the pre-approved HRMS and accounting solutions provider allows them to capture the broader market more effectively and efficiently by putting themselves on the forefront of the market.

Singapore's SaaS ecosystem spans ERP, CRM, HR and collaboration tools, with the domestic market projected to grow at a mid-to-high teens CAGR through the late 2020s, driven by cloud migration and workflow automation. HR technology represents a high-priority segment within this universe, as enterprises formalize talent management, hybrid work policies, and data-driven HR decision-making amid a 􀆟ghtening labor market.

The competitive landscape remains fragmented where local vendors compete on compliance and service, while global platforms target mid-market and above. Differentiation for SME-focused players hinges on PSG pre-approval status, localization, and integrated "stack" offerings that minimize vendor coordination. Info-Tech's positioning – combining HRMS, accounting, training services and now CRM expansion – aligns with SMEs' preference for unified platforms over point solutions.

Recent policy shifts emphasize AI integration and advanced automation. Budget 2026's focus on an "AIenabled economy“, including expanded tax incentives for AI R&D encourages HRMS providers to embed capabilities like predictive scheduling and automated onboarding. For integrated platforms, this creates opportunities to upsell AI-enhanced modules to existing customers, while sustaining grant relevance as fiscal support pivots toward higher-value digital capabili􀆟es.

Financial Review

The Group revenue increased 29.2% year-on-year to S$56.5m in FY2025 from S$43.7m in FY2024, supported by broad-based contributions from all three segments. Particularly, majority of the contribution was seen by higher Academy training revenue in the Services segment and their subscription business supported revenue with continued growth. Subscription revenue rose 8% from S$36.2m to S$39.1m and accounted for 69% of total revenue, underpinned by growth in HRMS active users and accounting software customers. Services segment saw sharp expansion, improving more than three-fold from S$5.3m to S$15.0m in FY2025, with the growth mainly attributed to Academy revenue growth.

The Group has provided a strong and solid orderbook of S$29.0m in FY2025, up 13% from S$25.6m in FY2024, providing good revenue visibility into FY2026. Annual Recurring Revenue (ARR) also showed growth, growing 18% from S$21.6m to S$25.4m in FY2025 because of expanded subscription user base. The combination of growing active user base and revenue visibility implies the Group’s improved recurring revenue quality.

Gross Profit expanded in line with revenue, maintaining 85% gross margins consistent with prior periods. As a result, gross profit improved 28.6%, from S$37.4m to S$48.1m in line with improved revenue and consistently high gross margins. Consequently, net profit also improved 21.7%, from S$12.3m to S$15.0m.

The Group ended FY2025 debt-free with a net cash position of S$67.3m, representing approximately onefourth of their market capitalization, boosted by IPO proceeds and strong operating cash flow. The Group also proposed a total FY2025 dividend of 3.50 Singapore cents per share, representing 60% of the Group’s NPAT and 50% of its adjusted NPAT.

Financial Review

Info-Tech continued to deliver robust operating metrics across its user base and product lines in FY2025. HRMS active users increased by 23%, from 787,000 to 970,000 users, while accounting software customers grew by 51%, from 1,200 to 1,700, underscoring successful cross-sell and new customer acquisition efforts. This user expansion translated into higher revenue across all four product segments – HRMS, Accounting Software, Services and Hardware – with no segment experiencing a decline.

Growth in the Services segment was particularly notable, driven by the strong performance of Info-Tech Academy. Total Academy registrations rose from over 2,000 in FY2024 to more than 18,000 in FY2025, representing growth of at least 750%. More importantly, over 80% of FY2025 registrations were for AIrelated courses, highlighting robust industry demand for AI-focused training.

The Group’s subscription-led model has supported strong customer stickiness and resilient recurring revenue. Annual Recurring Revenue (ARR) increased by 18%, from S$21.6m in FY2024 to S$25.4m in FY2025, reflecting both user growth and deeper product adoption. In tandem, the subscription order book expanded to S$29.0m in FY2025, providing healthy revenue visibility into FY2026 and beyond.

Risks

With SMEs accounting for approximately 90% of Info-Tech’s total customer base in Singapore, the Group is significantly exposed to the pro-cyclical nature of the SME segment, where budget constraints or business cessations can directly impact recurring revenue. This risk is compounded by a heavy reliance on the Productivity Solutions Grants (PSG), which supported 66% of new SME acquisitions in FY2024. Because the PSG only subsidizes the initial year of adoption, the Group faces a structural “renewal risk” once subsidies lapse and pricing resets to market rates. Any reduction in grant availability or loss of “preapproved” vendor status could materially decelerate new customer acquisition and impair long-term growth visibility.

Info-Tech’s “compliance-as-a-service” value proposition is predicated on its ability to maintain real-time software updates that reflect evolving tax, labor, and data protection laws across Singapore, Malaysia, Hong Kong and India. Any failure or delay in monitoring and implementing these statutory changes into its HRMS and accounting ecosystem could result in regulatory non-compliance for its customer base. Such operational lapses would likely trigger legal claims, damage brand equity and jeopardize the Group’s critical “pre-approved” vendor status.

Info-Tech operates in a highly fragmented landscape, facing competition from both niche local providers and well-capitalized international ERP giants. The Group is vulnerable to rivals leveraging superior R&D and marketing budgets to offer deeper price discounts or move “down-market” into the SME segment. Any failure to anticipate technological shifts or match the feature expansions of competitors could lead to significant market share erosion and a deceleration in new customer acquisition. The Group’s profitability is exposed to pricing risk due to the cost-sensitive nature of its SME client base. Upon contract completion, customers may leverage the competitive landscape to renegotiate for more favorable discounts, leading to direct revenue erosion. This vulnerability is structurally compounded by the absence of price-increase clauses in existing subscription contracts. Consequently, Info-Tech is also unable to pass on potential hikes in tits cost base to its existing customer base.

DISCLAIMERS AND DISCLOSURES

This report has been prepared and distributed by SAC Capital Private Limited (“SAC Capital”) which is a holder of a capital markets services licence and an exempt financial adviser in Singapore.

This report is provided for general information only and is not intended to constitute investment, legal, tax or accounting advice. It has been prepared without regard to the specific investment objectives, financial situation, tax position or particular needs of any individual person or specific group. Nothing in this report constitutes a solicitation, invitation or offer to buy or sell any securities Prospective investors should conduct their own due diligence and obtain independent advice (including from a financial adviser) as to the suitability of any investment, taking into account their personal circumstances.

This report is confidential and is provided solely for the recipient’s information. The contents of this report may not be copied, reproduced, published, distributed or transmitted (in part or in whole) to any other person without the prior written consent of SAC Capital. The distribution of this report outside the jurisdiction of Singapore is also strictly prohibited. Recipients are responsible for complying with any such restrictions. No representation is made that this report may be lawfully distributed in compliance with any applicable regulations outside Singapore.

Whereas SAC Capital has not independently verified all the information set out in this report, all reasonable care and effort has been taken to ensure that the facts stated herein are accurate, this report might contain certain forward looking statements and forward looking financial information which are based on certain assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of the subject company to be materially different from those expressed herein. Predictions, projections or forecasts of the economy or market trends are not indicative of the future performance of the subject company. The inclusion of such statements and information should not be regarded as a representation, warranty or prediction with respect to the accuracy of the underlying assumptions of the subject company or that the forecast results will or are likely to be achieved.

Our opinion and facts set out in this report are based on the market, economic, industry and other applicable conditions prevailing as at the date of the preparation of this report. Such conditions may change significantly over a relatively short period of time and we assume no responsibility to update, revise or reaffirm our opinion in light of any development subsequent to the publication of this report, that may or may not have affected our opinion contained herein.

This report may contain forward-looking statement, forecasts and projections that involve assumptions, risks and uncertainties. Actual result may differ materially from those express or implied. Such forward-looking statements are made only as of the date of this report and SAC Capital assumes no obligation to update or revise them to reflect new information or future events.

No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information or opinions contained herein. To the extent permitted by law, SAC Capital and its affiliates, officers, directors, employees and agents expressly disclaim any liability (including negligence) for any loss arising from the use of its report or its content.

SAC Capital and its connected persons (including officers, directors and employees) may have positions in, make markets in, or effect transactions in securities mentioned in this report, and may from time to time provide or solicit advisory, corporate finance, underwriting, placement, sponsorship or other services to the issuers of those securities.

SAC Capital’s employees or connected persons serve on the board or trustee positions of the subject company as disclosed hereunder:

As at the date of this report, the analysts who covered the securities in this report have proprietary positions or material interests in the subject company covered, as disclosed hereunder:

ANALYST CERTIFICATION

As noted above, research analyst(s) of SAC Capital who produced this report hereby certify that

(i) The views expressed in this report accurately reflect his/her personal views about the subject company ;

(ii) The report was produced independently by him/her;

(iii) He/she does not on behalf of SAC Capital or any other person carry out other services involving any of the subject company or securities referred to in this report; and

(iv) He/she has not received and will not receive any compensation or benefits related to the recommendations or views expressed in this report or to any sales, trading, dealing or corporate finance advisory services or transaction in respect of the securities in this report. He/she has not and will not receive any compensation or benefits linked to the performance of the securities of the subject company from the time of the publication of this report either.