CEO Soong said the country has seen a substantial upswing in DC investments.
PETALING JAYA: Vstecs Bhd
plans to capitalise on the data centre (DC) opportunities in the country to support its earnings growth.
VSTECS chief executive officer J.H. Soong said the continued momentum in enterprise spending which offset the contraction experienced in the information and communications technology (ICT) distribution segment had enabled the group to sustain a healthy performance in the second quarter of this year.
“The enterprise systems and ICT services segments, which provide higher margins, played a pivotal role in improving our bottom line despite a decline in revenue.
“We concluded the quarter with a commendable profit after taxation and minority interest of RM15.7mil,” he said in a statement yesterday.
For the second quarter ended June 30, 2023 (2Q23), the ICT distributor’s revenue saw a 14% drop year-on-year (y-o-y) to RM608.8mil. Net profit, however, increased by 20% y-o-y to RM15.7mil or earnings per share of 4.4 sen.
Soong said the country has seen a substantial upswing in DC investments, underscored by substantial commitments from hyperscalar DC builders. This, in turn, brings in opportunities for VSTECS’ enterprise systems and ICT services segments.
“The extensive requirements of DCs span from hardware provisions to cybersecurity and power supply systems. We are well-positioned to meet these needs with our extensive portfolio of solutions and services,” he said.
According to Soong, the group is receiving the returns of its investment in nurturing an ICT services team several years ago with cloud capabilities.
“The surge in ICT services revenue was primarily due to demand for cloud-related services. There is still vast potential to be tapped in this segment, especially with the growth in cloud computing among enterprises,” he added.
